If Bitcoin pulls back, will the altcoins fall sharply?
In fact, this question should be the question in the minds of most retail investors at present. Let’s not talk about whether it will fall sharply. This kind of thinking is very dangerous.
On August 5, when the market fell to the lowest point, no one dared to cover their positions. Later, the market rose all the way, and these people missed the opportunity.
Those who rebounded and shorted were hit when Bitcoin broke 73,000. Later, Bitcoin rose all the way and their short positions were hit all the way. The obsession in the hearts of these people is that Bitcoin will definitely fall, so they shorted all the way.
For the main force, this effect is what they want. The panic in the market cannot be formed by a single decline, but it can only be formed after a long period of multiple declines.
If you don’t know the intentions of the main force and don’t understand the current trend, it’s okay once. After multiple rebounds and declines, the market consensus will be formed.
Once the market forms this kind of thinking, it will not be far from the main force’s harvest.
Since the beginning of last year, the trend of the market has been that the big cake has risen, and the cottage has not risen much. When the big cake has a slight correction, the cottage will fall sharply. For a whole year and a half, the patience and confidence of the market have been worn out, and then a consensus has been reached that the big cake will rebound and fall, and the big cake will have a small correction, and the cottage will have a big correction.
No matter how the cottage will pull back, open the weekly line and see, how many have broken the low point of the bear market?
The purpose of the main force doing this is to make retail investors form a bear market mentality, dare not enter the market, or cut losses and leave the market.
Fear of a big drop and dare not enter the market, and fear of missing the market, in fact, this is very contradictory, you can't have both fish and bear's paw, fear of a big drop and leave the market.
If you are afraid of missing the market, follow the position management strategy, buy in batches, never full position, and always keep a position to control risks.
It sounds clear, but it is difficult to do.
Unable to judge the trend, unable to distinguish between bulls and bears, not knowing whether the market has bottomed out, and not knowing position management, knowing nothing but thinking about making money, there is no pie in the sky, more traps.
Most retail investors don't know whether they are making money from short-term or trend, so they often turn short-term into long-term and long-term into short-term, and the end result is a loss of money.
If you don't have the ability to think independently and make decisions, no one can help you, because you will be influenced by the market sentiment.
