Learn and work hard to earn capital during the bear market!
The fluctuations in the market essentially come from two lines: liquidity and sentiment.
Both reinforce each other:
• The big cycle is driven by macro factors and halving;
• The small cycle is driven by surges in sentiment (such as Meme fever and the chaos of gold shovels).
Liquidity is also layered:
1) Active liquidity — the dealer ignites and starts the market;
2) Passive liquidity — followers driven by sentiment push the volatility to extremes.
The typical path is:
The dealer provides initial liquidity → Sentiment spreads → The buying group contributes to the final volatility.
To avoid becoming the buyer at the end of sentiment, the key is:
• Maintain distance when sentiment is high and the wealth effect is strong;
• Only enter when sentiment is low and there is value for money;
• Always focus on the overall capital structure, rather than short-term trends.
This is the logic at the core of the market.