I saw that all the Twitter posts were short sellers, and some friends left messages asking me to talk about it, so I decided to write about it.

The past six months can be said to be a nightmare for bulls, breaking the idea that many people are fine if they hold on to the bull market. Even if the bull market is still there, most people will periodically make early exits and reduce positions in the future. So compared with the last bull market, this bull market is only different in details.

The cyclical bull market in the currency circle has been verified many times, so it is obvious that a large number of new investors entered the market at the beginning of this bull market. In the previous bull markets, most of the new investors entered the market only after the frequent news of Bitcoin surge in the late bull market. This is the first point that is the same and different →→→ the injection of fresh blood

Most of the newcomers chose altcoins as their main assets to buy, believing that the profits of altcoins will greatly exceed Bitcoin. The difference is that because of the myth of getting rich quickly through contracts, many people saw the sweetness and abused leverage to open contracts. Therefore, in the liquidation leverage stage in the middle of the bull market, the decline of altcoins was extremely tragic. This is because of the serial liquidation stampede in the altcoin market, including the founder of CRV being liquidated by his own currency not long ago, which can explain some problems

So under the premise that the fundamentals of the currency itself are fine, it is not the altcoins in this bull market that have problems, but the people who abuse leverage have problems. There are liquidation trends in every bull market. Why do altcoins fall so tragically but Bitcoin is still okay? Just look at the holdings of Bitcoin and the holdings of altcoins and make a comparison. I will directly tell you the result. Most people have opened altcoin contracts, and the amount of funds is not small, but the leverage accumulated in the early stage of the bull market must be liquidated in the mid-term of the bull market, otherwise how can you get a bigger increase later? If you are the main force, are you willing to pull the market? Therefore, the decline of altcoins is much more than expected.

The similarity is that the leverage has been liquidated, and the difference is that the leverage of altcoins is larger this time. This is the second point →→→ liquidation leverage

The bull market is definitely still there, and the greater the volatility, the more ruthless the wash, the more fierce the future market will be and the stronger the endurance will be. A word for long-term holders, don't forget your original intention, wait for dawn, this round of bull market is the last round of retail investors' bonus period, you must withstand the pressure, and the subsequent bull market growth will definitely be very strong.