If a Bull Market Comes, Keep These Two Principles

In a recent roundtable meeting held at the Wuhan World Blockchain Conference, several guests had a heated discussion on the current and next year's bitcoin market.

For the current market, some people think that it is not yet a bull market, some people think it is just the tail of a bear market, and some people think that it has already entered a bull market.

But for next year's market, everyone agrees that there will be a pretty good trend, the difference is just how high the price of Bitcoin can be.

I am also quite optimistic about the trend of the entire market next year. Although we cannot accurately predict how the specific price and trend will develop, one thing is for sure, that is, the FOMO sentiment in the market will be repeated like any investment market in history, and once this sentiment is staged, it will make countless Inexperienced investors step on pits and fall into traps.

Therefore, previewing the development of this FOMO sentiment in advance will be of great help to our ordinary investors in discovering the pitfalls and how to avoid them as soon as possible, so as to maximize our profits.

Regardless of the cause of a bubble in any investment market, the last force before the bubble burst must be the gathering of retail investors, and the same is true for the cryptocurrency market.

Therefore, next year's market will definitely be accompanied by a large number of retail investors entering the market during the development process. With the entry of retail investors, the major media must report a lot of news related to Bitcoin and digital currency, which will attract more people to pay attention to this market. These two complementary forces will step by step attract funds from outside the circle to this market and blow up the bubble.

In fact, many of the current investors in the currency circle entered this circle through various media promotions in the previous Bitcoin bull markets, and secondly, many people entered the currency circle through various fund projects. of.

The currency circle has become more and more powerful through such rounds of bull market stimulation, and people's awareness and consensus on Bitcoin and digital currencies have also been gradually consolidated and developed through such rounds of bull market washing.

The development of anything is from quantitative change to qualitative change, and so is the development of market sentiment. There will be a turning point from quantitative change to qualitative change. The current turning point is when Bitcoin breaks through $20,000.

Psychologically, $20,000 is a number that is easy for people to remember and associate with; in terms of data, $20,000 marks that Bitcoin has completely broken free from the spell of the peak of the previous round of bull market, opening up unlimited room for growth.

When Bitcoin breaks through and stands at $20,000 without any constraints, people will start to look forward to its price. At this time, off-market retail investors with curiosity and a mentality of getting rich will curiously come in to explore the way.

When retail investors come in to explore the way, they will find that although Bitcoin is good, the price is too high: 1 piece costs 20,000 US dollars, which is unaffordable; 0.1 piece costs 2,000 US dollars, which is a bit difficult; Can't do it. Besides, buying 0.01 coins has no sense of existence or meaning at all, so I turned my attention to other coins.

They saw Ethereum, but as Bitcoin breaks through $20,000, the price of Ethereum will not be cheap, and it will also rise to a price that they seem unable to buy. So they will continue to inquire about other high-quality projects.

DeFi projects are a popular field, so I quickly looked at various DeFi projects and found that many coins can be bought for only a few dollars, and some coins are cheaper, less than a dollar, so they bought these coins ecstatically. In this way, the first batch of retail investors entering the market will push up these coins from a few dollars to more than ten dollars.

With the rise of DeFi tokens, retail investors discovered that the wealth effect miraculously happened, it was so simple and so rough, so this sentiment further fermented, attracting more retail investors outside the circle to enter the market.

When a new group of retail investors entered the market, they found that Bitcoin and Ethereum had risen to new highs, and value coins in the DeFi field were also expensive. Let’s look at those coins that were once famous but are now unknown. The price is still cheap. As a result, the prices of such coins began to rise, and often at this time, these coins will be exposed to good news, making people feel that they still have a chance.

When the prices of DeFi tokens and such second-tier tokens start to rise, people will suddenly find that the prices of Bitcoin and Ethereum are too low compared to the sharp rise of these tokens, so big money starts to buy again Bitcoin and Ethereum, push their prices to a higher level, opening up space for the entire market to rise.

In such rounds of push and rise, the retail investors who finally entered the market found that only junk coins were cheap, so they bought junk coins desperately.

At this time, the market crash is close at hand, and the moment of chicken feathers is about to begin. The market will repeat the previous story, and enter the bear market again after the bubble bursts.

As ordinary investors, since we have seen the development of emotions in advance, how can we avoid the situation of chicken feathers happening to us?

I suggest keeping two principles:

1. No matter how the market sentiment ferments, you must not buy junk coins and second-tier coins, no matter how impressive their gains are and how good the story is.

2. We can throw away the value coins in the opponent's hands at a high level, but after throwing them away, we can replace them with stable coins and hold them in our hands. Never change them into junk coins and second-tier coins.

I hope that everyone can step on less pitfalls and make more profits in the next round of market conditions.