Recently, BTC has shown strong momentum, breaking through $90,000 overnight, with an astonishingly sharp rise, and there are almost no signs of it slowing down. Ethereum has also not been outdone, reaching a high of $3,394, with a very impressive performance. At this time, we can see that the market sentiment is still biased towards the bulls, which means that the upward trend may continue for some time. Typically, the volatility is more intense at night, while the daytime market provides more opportunities for Altcoins.
The rise and fall rhythm of Altcoins
Yesterday, Ethereum-based Altcoins also rose as expected. During the day, Altcoins like Doge continued to surge crazily, with its price rising from $0.2 to $0.4 in just four days! Such rapid increases are often accompanied by retracements, especially for those coins that have risen sharply, and it is only after the retracement that a better buying opportunity may arise. Relatively speaking, those coins that rise more slowly and oscillate upwards have stronger sustainability.
In short-term trading, everyone needs to learn to ride the waves, and not chase the price when it rises sharply. Coins that have risen rapidly are very likely to experience a significant correction due to short-term overheating. Yesterday, ENS had a positive news, which directly pushed it up by more than 10%, but it then corrected. Similarly, UNI also had a similar surge, although it rose by more than 10%, but the sustainability was not strong.
How to deal with short-term volatility
So, if you don't have a position, don't blindly chase the high price. If you already have a position, you can choose to operate at an appropriate time, and take profits in time to avoid losses due to violent price fluctuations. For long-term investors, short-term volatility can be ignored, and the focus should be on long-term trends.
Don't blindly chase the rise and fall
In the current market, as long as you don't blindly chase the rise and fall, you can actually make money. Whether it's short-term or long-term, as long as you are patient and hold your position, you have the opportunity to profit. Don't expect miracles like Doge doubling in a few days from the start, especially for the recently hot ACT, where many people made millions of dollars with just a few hundred dollars, which may seem like the market opportunities are limitless, but this is just "survivor bias", and the real people who can make money are a minority.
This also tells us that there are indeed many opportunities in the market, but not every project can explode. When the market is good, don't be in a hurry to heavily bet on a certain coin, as the market trend is not absolutely predictable, only relatively probable. For example, although BTC has broken through $90,000, it doesn't mean it won't quickly fall back to $70,000. This is the charm of the market: every price has buyers and sellers, and the price fluctuations are determined by the game between the two sides.
The multi-interpretability of market prices
When we understand that the probabilities of prices rising and falling are about the same, we can look at the market's ups and downs more rationally. Often, investors rush to see immediate profits after entering the market, but the development of the market is often more complex than we imagine. Even if the price ultimately reaches our expected target, the key is whether we can hold on when the price corrects.
Each time we enter the market, we can't just think about "making money immediately", we also need to be psychologically prepared, there may be floating losses, and even need to consider the risk of liquidation in extreme market conditions. Everyone knows that the volatility in a bull market is often more intense than in a bear market, and many people tend to overestimate their risk tolerance during a bull market. Therefore, even if they know the market is in a bull market, many people still short against the trend, and end up losing money. This also proves the "zero-sum game" nature of the financial market: one person's profit necessarily means another person's loss.
Risk management, control the rhythm
So when you make money, you need to understand that there are people using strategies they think can make money, but are actually losing money; and when you lose money, don't be too discouraged. The rise and fall of the market is as simple as that, controlling the rhythm and patiently waiting is very important. Many people see the market picking up and frequently adjust their positions, but in fact, this frequent operation often causes them to miss the big rally opportunities. You see, everyone used to say Ethereum and ADA were not good, but now they have all risen, showing that the market has its own rhythm.
Medium and long-term holding, patiently waiting
For medium and long-term investors, the most important thing is to hold firmly, and not to adjust frequently. The long-term trend of the market will prove that patience is the key to success. Don't get caught up in the short-term ups and downs, look further ahead, the future is boundless!
Summary
In short, in the face of the current market situation, we need to learn to operate rationally, not blindly chase the rise and fall. In short-term operations, we need to learn to ride the waves, and in medium and long-term investments, we need to hold firmly without being affected by short-term fluctuations. There are many opportunities in the market, but also full of uncertainty, we need to stay calm, do a good job of risk management, and patiently wait for the opportunities the market brings us.
Finally, there is actually a lot more that hasn't been written in, such as specific opportunities, specific decisions, these things are often not something that can be summarized in an article.
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