Bull market rises slowly and falls sharply - the only way to a healthy bull market

A healthy bull market does not rise in a straight line, but is accompanied by multiple plunges and slow rises. This is a process of constant deleveraging, cleaning up floating chips, and building momentum for higher gains.

The bull market is characterized by its "slow rise and sharp fall".

This is not an accidental phenomenon, but has its profound basis in economics and market psychology.

In a bull market, investor confidence gradually increases and funds continue to flow in, driving currency prices to rise slowly but steadily.

However, this kind of rise cannot be endless. When market sentiment is overheated and the speculative atmosphere is strong, it is easy to fall sharply. $BOME $BTC $ETH

This sharp decline is not only a mechanism for market self-correction, but also a reserve and guarantee for future gains.

It cleans out those short-term profit-seeking speculators and provides better buying opportunities for investors with long-term vision and firm convictions.

On the contrary, the bear market shows the characteristics of "negative decline and occasional rebound".

In a bear market, market sentiment is pessimistic, funds continue to flow out, and currency prices occasionally rebound during a long-term downward trend. These rebounds are often short-lived and difficult to change the overall downward trend of the market.

Therefore, in a bear market, investors should remain cautious and not easily buy the bottom. Instead, they should wait for signals that the market is really warming up.

Looking back at history, we can find that both the bull market in 2017 and 2021 followed this pattern. Although the bull market in 2017 fell more often and rose more slowly, it also provided us with more buying opportunities and a more solid market foundation.

Although the bull market in 2021 will fall less and rise faster, it will also be more prone to sharp declines and adjustments. This once again proves the importance of bull markets needing a sharp decline to cleanse leverage and float.

Therefore, for those investors who hope to obtain long-term gains in the bull market, they should not be afraid of the plunge, but should regard it as an opportunity and a challenge.

Only after many plummets and slow rises can the bull market go further and higher. And those bull markets that have been going straight up may hide greater risks and challenges. Because, without experiencing the baptism of the plunge and the process of deleveraging, the market's rise lacks a solid foundation and sustained momentum.

In short, a healthy bull market needs to go through many plummets and slow rises. This is not only a process of market self-correction and leverage cleansing, but also a process of building momentum and providing protection for future gains. Investors should face up to the challenges and opportunities of the plunge, strengthen their beliefs and remain patient, so as to obtain better profits and returns in the bull market.