After each round of significant rises, the market must go through a washout phase. This is the inevitable result of cashing in profits and those chasing high prices unable to withstand the pressure and stop losses. After this process eliminated the above two types of participants, all those left in the market were holders with firm beliefs, resulting in a significant reduction in trading volume and a silence in the market.
This market law reveals the cyclicality and inevitability of trading activities, in which firm holders play an indispensable role as a stabilizer. Washing the market is not only a process of natural purification of the market and concentration of chips, but also a necessary step to create conditions for subsequent pull-ups. And when market transactions shrink extremely, it is the eve of a new wave of market conditions brewing, indicating that a more rapid price rise is about to usher in.
With the deepening of market understanding and the continuous evolution of trading behavior, this kind of cyclical fluctuations based on human nature and market psychology will continue. For investors, understanding and complying with this law and seizing the opportunity for washouts and pull-ups will be the key to moving forward steadily in a volatile market. During this process, maintaining calm judgment and adhering to the concept of long-term value investment will become an important cornerstone for crossing cycles and achieving asset appreciation. #新币挖矿&盘前交易USUAL #新币挖矿你参加了吗? #超级MEME周期?