Recently, market trends have once again approached all-time highs. Interestingly, at this sensitive juncture, many investors are instead developing the idea of shorting. This "fear of rising" mentality actually exposes a common problem—insufficient understanding of market rhythm.



Looking at recent market movements, when a mainstream coin experienced a correction on the morning of the 23rd, many novice investors wanted to establish short positions to ride the trend. However, from multiple perspectives, this decision actually has significant flaws.

**From a macro perspective, liquidity is improving.** The Federal Reserve's repurchase agreement program signals clear easing, which in the economic cycle often means risk assets will garner more attention. As a typical risk asset, the crypto market usually follows this policy cycle upward. Only by understanding this big picture can one avoid being misled by short-term fluctuations.

**From a technical perspective, the chips have already been aligned.** These leading coins have mature ecosystems and large user bases, and before reaching new highs, they have undergone sufficient shakeouts. The current oscillation is actually digesting historical trapped positions, preparing for the next breakout. Every dip on the candlestick chart represents capital consolidating the bottom.

**From a capital perspective, the main forces' intentions are clear.** During the adjustment period, the short positions in the futures market did not increase significantly, which precisely indicates that mainstream market funds are not bearish. Instead, there are signs of continuous accumulation. In this context, following the trend to short is like running against the crowd.

The crypto market is never short of opportunities; what is scarce is the ability to perceive them. The main reason many investors lose more than they gain is simply because—they always try to go against the trend and bet based on intuition. Once you learn to follow the market rhythm and replace feelings with data and logic, the balance of gains will gradually tilt in your favor.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
NotAFinancialAdvicevip
· 8h ago
Coming again to teach people how to trade cryptocurrencies, I'm tired of this set of rhetoric.
View OriginalReply0
rugpull_ptsdvip
· 13h ago
Seeing beginners again chase short positions, can they make it out alive this time?
View OriginalReply0
NFT_Therapyvip
· 13h ago
Here comes another one trying to persuade me to buy more... I just want to ask, how did the people who shorted end up?
View OriginalReply0
PonziDetectorvip
· 13h ago
Talking about following the trend again, it's correct but no one is listening.
View OriginalReply0
Layer2Arbitrageurvip
· 13h ago
actually if you ran the numbers on fed liquidity injection schedules vs futures open interest deltas, you'd see the shorts are getting liquidated at predictable intervals. the basis is literally printing money rn but sure keep fighting the tape lmao
Reply0
ser_ngmivip
· 13h ago
Starting to short again? Brother, are you really trying to lose money?
View OriginalReply0
quietly_stakingvip
· 14h ago
Seeing new highs and short positions again—this routine is so familiar.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)