In the crypto space these past few days, there’s just one word:
It's brutal.
BTC has broken through key support, ETH's losses are widening, and altcoins are taking a nosedive.
I opened my trading app, and it's all red.
Countless traders are getting liquidated, many are cutting losses.
Some folks are starting to doubt if the bull market has come to an end.
Some are already calling for a bear market.
Even more are swearing off contracts for good.
But if you've lived through the bull and bear cycles of 2017, 2020, 2021, and 2024, you realize:
The real big opportunities often arise during the most panicked times.
So the question is:
Is this crash really the end of the bull market?
Or is it the main players' last shakeout?
Why did it suddenly plummet?
Many think it’s a single bearish factor.
Actually, it's not.
This drop seems to resonate with multiple factors simultaneously.
First layer reason: profit-taking.
Since the beginning of the year.
BTC has been on a steady climb.
Many institutions and whales have already accumulated huge profits.
When market sentiment is overheated.
Profit-taking is an inevitable event.
There’s no market that goes up forever.
There’s no bull market that only goes up.
Second layer reason: high leverage.
According to on-chain data.
In recent months, the overall market leverage has been steadily increasing.
Many investors are using 20x, 50x, or even 100x leverage.
When the price breaks below key levels.
Chain explosions are starting to appear.
Then a stampede occurs.
Price may further decline.
Continue triggering liquidations.
Forming a death spiral.
Many think it's the main players dumping.
In fact, much of the drop comes from the market's own liquidation mechanism.
Third layer reason: macro funds seeking safety.
Recently, global risk assets have been under pressure.
Funds are starting to flow back into dollar assets.
US stocks are adjusting.
Gold is choppy.
Cryptocurrency cannot escape this either.
BTC is becoming more like digital gold.
But it still belongs to high-risk assets.
When funds are tight.
The first to be sold off are often high-risk assets.
Technical analysis: where is the bottom?
This is the question everyone is most concerned about.
Let’s get to the conclusion:
Don’t fantasize about buying at the bottom.
Those who really make money.
It’s never those who catch the absolute bottom.
But rather those who build positions in the bottom area.
First target zone.
BTC is currently close to the last round of important trading volume zone.
There's a lot of institutional cost here.
If it can stabilize.
This will form the first layer of support.
Second target zone.
If the panic continues to escalate.
The price might further test around the 200-day moving average.
Historical data shows.
Deep corrections in every bull market.
In the end, they all find support near this position.
What do on-chain data reveal?
Recently, some very interesting data has started to emerge.
Whale addresses are starting to accumulate.
The number of large wallets is on the rise again.
This indicates that smart money is quietly accumulating.
When retail investors panic sell.
It’s often when big money enters the market.
Exchange BTC reserves are decreasing.
More and more BTC is leaving exchanges.
Move to cold wallets.
This means long-term holders are not selling off massively.
Instead, they continue to hoard.
The fear and greed index is nearing extreme fear.
There’s a very interesting pattern over the past few years.
When everyone is discussing the bull market.
Markets often approach the top.
When everyone is discussing going to zero.
Markets often approach the bottom.
Currently, market sentiment is rapidly approaching extreme fear territory.
This is usually not the stage with the highest risk.
This is often a stage where opportunities gradually emerge.
When can we start bottom-fishing?
My viewpoint is very clear:
You can start bottom-fishing now, but don't go all in.
Pay attention.
This is just the beginning.
It's not an All In.
First stage.
Invest 20% of total capital.
Establish an observation position.
If it keeps dropping.
There are also funds averaging down.
Second stage.
When BTC re-establishes key moving averages.
Trading volume is starting to increase.
Invest 30%.
Third stage.
Confirm the trend reversal.
The market is reshaping an upward structure.
Invest remaining funds.
Which coins are worth watching?
If the bull market hasn't ended.
Future funds will definitely prioritize mainstream assets.
The order is likely to be:
BTC → ETH → AI sector → RWA sector → GameFi → Altcoins
So at this stage.
Priority consideration:
✅ BTC
✅ ETH
✅ SOL
✅ BNB
Next, focus on leading AI tracks.
And not those trash coins that have already dropped 90%.
Because in a bear market.
The first to hit zero are always the small coins without value support.
Final judgment.
If you ask me:
Is this the end of the bull market?
My answer is:
Currently, there’s no evidence showing the bull market has completely ended.
I tend to think that:
This is a typical mid-term shakeout.
The goal is simple.
Letting high leverage exit.
Letting emotions cool down.
Letting chips return to the hands of the strong.
Historically, every super bull market.
There will be several drops of 20%-40%.
And those who can ultimately make big money.
It’s often not the most accurate predictors.
But rather at the most panicked time in the market.
But those who hold their bullets.
Remember a saying that all seasoned traders know:
A crash in a bull market is risk release; a surge in a bear market is the real trap.
When your friends start showing off their profits, you should be cautious.
When the whole network is shouting 'zero', maybe an opportunity is quietly emerging.