Declines are both a cleansing of sentiment and a reorganization of structure

Bitcoin continues to decline. On the surface, it appears to be a price retracement, but fundamentally it is a dual cleansing of sentiment and leverage. In the previous rally, many funds were not based on long-term conviction but were driven by the profit effect, using high leverage to chase short-term gains. When the upward momentum slows, these funds are the first to waver, exiting in a stampede that amplifies volatility. The bottom often does not occur when "good news appears," but when "bad news no longer triggers new lows." When the market becomes gradually numb to bad news, it indicates that selling pressure has been largely absorbed.

Observe a few signals: First, after trading volume continuously shrinks, a gentle increase in volume often follows; second, after a continuous decline, multiple long lower shadows appear, indicating support; third, market discussions shift from fantasies of getting rich quickly to risk management. True reversals usually happen quietly when most people stop talking about them.

Rather than guessing the bottom, it’s better to deploy in phases, treat time as an ally, and let position management replace emotional judgment. #我在Gate广场过新年