In just 3 days, BTC dropped from $108,000 to a low of $92,000, a decline of nearly 15%. This recent pullback has served as a wake-up call for us to learn to respect the market; long-term investments should avoid leverage! Even with 2x leverage, there is a possibility of liquidation!
The market is interesting this way; when it rises, there's joy all around, and when it falls, there's despair everywhere. In November, Bitcoin also experienced a rise from $80,000 to over $90,000 in just 3 days. Looking back at past coin prices, you have to get used to and accept such declines and fluctuations!
In fact, behind Bitcoin's volatility, market sentiment is the real driving force. When prices rise, everyone fears missing the opportunity and rushes to buy; when prices fall, there's panic selling, fearing further losses. This emotional cycle drives the market's violent fluctuations, providing space for short-term investors to operate.
However, what truly determines Bitcoin's future trend is its long-term value. The popularization of the Bitcoin concept, the influx of institutional funds, and the global recognition of Bitcoin all provide a solid foundation for its future. Short-term fluctuations are inevitable, but the long-term trend remains promising.
Of course, this does not mean that market sentiment can be ignored. Although emotional reactions are short-lived, they are sufficient to drive capital flow and influence short-term price trends. Therefore, smart investors need to learn to remain calm amid emotional fluctuations, while also going with the flow; they should carefully plan when market sentiment is high and seek opportunities when there is market panic.
