In the early stages of this bull market, after experiencing the first wave of violent liquidations due to leverage, there will likely be similar situations in the future, but they will definitely be extremely rare. One must understand that in a bull market, one should not easily entertain the thought of liquidating. The people who were liquidated a couple of days ago, will they have the chance to re-enter the market? Even if the market warms up today, do they have the courage to jump back in?
After every significant rise, a major cleanup like this happens, which actually holds important significance, as it aims to level the average cost of the chips held by everyone. For example, if I bought Bitcoin at 10,000, when it rises to 20,000, I’m mostly calm and can hold steady; but if it rises to 40,000, I start to think about whether I should cash out. So at the 20,000 point, the market needs to “rub” everyone’s chip costs, bringing them to an average level. Those who can withstand the turmoil and refuse to exit are the “diamond hands,” and even when the market rallies hard in the future, there’s no need to worry about them dumping large amounts, creating excessive pressure.
When the next rally occurs, most people will be able to keep their cool and won’t easily sell, and it can also attract a large amount of external capital, naturally allowing the market to rise steadily. The logic behind this is roughly as follows: therefore, the most important thing right now is to hold tightly to the coins in hand and not let go easily. Who hasn’t encountered a hundred-fold or ten-fold coin? But many people ultimately don’t make money, and the crux of the issue lies in being too eager, frequently swapping in and out, without properly researching whether the coins in hand truly have potential.
In the next three months, it might be worthwhile to invest your time and energy into this. If you gain a deep understanding, the profits could equate to the income for the next five or even ten years. Usually, one should review and study more; although no one can guarantee flawless judgment every time, at least one should avoid repeatedly stumbling over the same issue.
5 years of experience in the crypto field; feel free to consult on any questions. For those who want to improve together in the community, check out my profile.