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“After a big surge and big crash, there must be consolidation and sideways trading”—this is a rule of iron that I’ve verified with 9 years of live trading.
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Looking back at Bitcoin’s price action from 2021 to today, the pattern has never changed:
April 2021: Bitcoin topped at 64,800. After the crash, it traded sideways and oscillated for nearly 5 months before choosing a direction again.
November 2021: Topped at 69,000, then crashed to 33,000. It then went sideways and oscillated for 4 months to build up strength for the next leg of the market.
June 2022: Luna collapsed, Three Arrows Capital blew up. After Bitcoin plunged, it went sideways for over 3 months before completing the bottom turnover.
January 2023: Bitcoin rebounded from 16,000 to 30,000+, then went sideways for over 3 months. After building up energy, it pushed higher again.
March 2024: Bitcoin surged to 73,000, then traded sideways in a 60,000–70,000 range for more than 3 months.
December 2025–January 2026: Bitcoin crashed from a peak of 126,208 down to 57,758. After that, it consolidated in a 58,000–65,000 range for nearly 3 months before starting the 3rd-wave bull leg.
August 2026: Bitcoin jumped from 62,484 to 79,555. After the big rally, it entered another phase of sideways consolidation.
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After every one-way move, there will inevitably be a period of sideways consolidation.
This isn’t a coincidence. It’s market law—an inevitable path of chip turnover, sentiment repair, and the main players building up momentum.
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Why is sideways consolidation so important?
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First, profit-taking capital needs to cash out.
After a strong surge, the early-entry capital is sitting on huge unrealized gains and needs time to distribute. Once the profit-taking orders are cleared, only then will new capital be willing to take the position.
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Second, the trapped positions need to be absorbed.
After a big selloff, the capital trapped at high levels is still holding on. They need time to add to positions at lower levels and average down the cost, or wait until the rebound reaches their psychological price before cutting losses and exiting.
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Third, the main players need to re-accumulate chips.
After a one-way move ends, the main players’ chips are also almost out. They need to re-accumulate chips during the sideways consolidation to prepare for the next leg.
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Fourth, market sentiment needs to be repaired.
After a big rally, FOMO sentiment reaches its peak; after a big drop, panic sentiment hits the extreme. The market needs time to cool off so traders can get calm again.
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With 9 years of live trading, I’m clearer than anyone—
Sideways consolidation isn’t a lack of opportunities—it’s the market telling you:
“Don’t rush—I’m brewing the next move.”
If you trade too frequently during a range-bound period, it’s easy to get stopped out back and forth;
If you wait patiently in the sideways range, you can enter calmly when the next uptrend starts.
So, I often say in the strategy group:
“If you can’t understand it, wait; if you can’t hold it, reduce it; if you can’t control your hands, close the software.”
It’s not because I’m so patient. After 9 years, I’ve seen too many explosions in such “sideways build-up” phases.
If you can endure the loneliness, the market will reward you.