This is not an obscure analytical perspective.
During the most aggressive upswing phases of many crypto tokens, the market has already started to discount the next stage’s buying demand.
Crypto traders can buy with spot or borrow money or use futures to amplify positions in advance.
The latter method concentrates what would normally happen gradually over the future into a shorter period. The token price then rises rapidly, and bystanders, seeing the rally, open positions as well.
By the time a large number of people have already bought and are carrying the position costs, sustaining an uptrend requires even stronger new demand.
Once the price falls, closing leveraged positions will also concentrate and release sell orders—so this token can then crash hard.
Seeing a coin suddenly accelerate upward only proves that the capital entering the market right now is very urgent; it does not prove that its upward pattern can continue.
#以太坊突破2700美元
$MUBARAK
$AERO
$QI
During the most aggressive upswing phases of many crypto tokens, the market has already started to discount the next stage’s buying demand.
Crypto traders can buy with spot or borrow money or use futures to amplify positions in advance.
The latter method concentrates what would normally happen gradually over the future into a shorter period. The token price then rises rapidly, and bystanders, seeing the rally, open positions as well.
By the time a large number of people have already bought and are carrying the position costs, sustaining an uptrend requires even stronger new demand.
Once the price falls, closing leveraged positions will also concentrate and release sell orders—so this token can then crash hard.
Seeing a coin suddenly accelerate upward only proves that the capital entering the market right now is very urgent; it does not prove that its upward pattern can continue.
#以太坊突破2700美元
$MUBARAK
$AERO
$QI