On the stage of the bull market in the cryptocurrency world, it should be a joyful feast of wealth, yet sharp declines always shadow it, leaving people puzzled. In fact, behind this lies an intense game between the main players and retail investors, and the sharp decline is precisely the 'washing' tactic meticulously planned by the main players.
In a bull market, retail investors often hold firm beliefs and dreams of wealth, showing high loyalty, like a group of 'stubborn individuals' firmly rooted in the market. The main players know that without strong measures, it is difficult to make them leave easily. Thus, the sharp decline, this 'trump card', comes into play. Sometimes, a single sharp decline is not enough to shake the determination of retail investors, and the main players may even launch a series of consecutive sharp declines, known as 'combinations', until most retail investors sell off in panic.
Perhaps some may wonder, wouldn't it be wonderful if everyone profited together in a bull market? Why must the main players wash out retail investors? This is because, in the cryptocurrency world, where the total amount of funds is relatively fixed and there is insufficient new capital inflow, the presence of retail investors constitutes a significant obstacle to the main players in raising cryptocurrency prices. Imagine, the main players exerting great effort to raise prices, while retail investors quickly 'get off the train' at the slightest profit; this undoubtedly puts the main players in the awkward position of 'making clothes for others', greatly increasing the cost and resistance of the rise.
On the contrary, if the main players can successfully wash out retail investors through sharp declines, forcing them to cut losses in pain, they can not only smoothly achieve their profit targets but also clear obstacles for further price increases, laying a solid foundation.
Thus, it can be seen that the frequent occurrence of sharp declines in a bull market is rooted in the high stickiness of retail investors. This also warns a wide range of investors that in the frenzy of a bull market, if they cannot formulate wise operational strategies, they may very well become 'leeks' to be harvested, facing more severe losses.