Prior to anything else, it's critical to realize that we are currently in one of them. Bear market rallies are brutal because it's difficult to predict how long they'll last, how strong they'll be, and how long they'll last. It is challenging for most individuals to comprehend this because they lack patience and think in terms of the most minute time frame.
Rallies that periodically occur inside the downward macrotrend create a downward trend with lower highs on high periods (from 3 days to 1 week). Some of them result from cutting short positions in order to profit and start new short positions at higher levels.
Ultimately, a redistribution takes place after several weeks of growth of 30–50% (or possibly twice that, depending on the market's structure). Before they pull the rug out from under people, they need to think that the macro trend has altered.
The market's function is to take money.
Although he is capable of giving in, movements usually happen when traders are not around. The price rises if everyone is short. Down if they are long. Although it seems strange, it is true. The market is an evil steed. You are forced to buy when prices increase. Moving lower encourages selling. You must act because of the price. Keep in mind the feelings you have as you move up or down.
There won't be much market share lost if the price declines uniformly. However, the availability of rebounding enables powerful players to profit from movements in both directions while also taking the most money possible from you. Months of decline, followed by a recovery. You don't believe it at first, but it keeps getting stronger. When you finally give up and put your chips back on the table, they again take them away from you.
Before you declare that a fresh bear market has started, consider how long downtrends often persist. You should expect downtrends of one to two years and possibly a year of unpleasant sideways movement. Both in the cryptocurrency market and the stock market, there are a ton of historical examples of this. Look at the numbers and consider whether the extra funding can sustain the FDV of a sector whose overall valuation has increased 7 times. Do we have a sudden increase in users? new currency
The levels of BTC , ETH, ADA, and SOL as of today were marked to the nearest dollar six months ago. These are merely precursors to a bearish comeback and nothing more, as the primary macroeconomic issues still exist.
There will be multiple chances over the coming weeks to sell the rise and rebuy lower. After that, the decline will likely continue or there will be a long flat. If someone tells you there will be a new bull market but doesn't know how or why we got here, don't believe them.
Any powerful move up will inevitably be met with a countermove below. You'll now start to wonder why you didn't take advantage of the opportunity to make a profit. Don't be frightened to simply progress upward gently. Protect your capital to survive. Unknown are the scope and length of the current era. However, given the background, it is likely that the trend will last for some time.
There will be multiple chances over the coming weeks to sell the rise and rebuy lower. After that, the decline will likely continue or there will be a long flat. If someone tells you there will be a new bull market but doesn't know how or why we got here, don't believe them.
Any powerful move up will inevitably be met with a countermove below. You'll now start to wonder why you didn't take advantage of the opportunity to make a profit. Don't be frightened to simply progress upward gently. Protect your capital to survive. Unknown are the scope and length of the current era. However, given the background, it is likely that the trend will last for some time.
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