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Repeated Pattern:
Similar market traps have occurred before, typically followed by sharp downward corrections.
This time, the trap appears to be on the upside, hinting at a potential bull rally before a sudden drop.
Bull Trap Concerns:
High 24-hour trading volume, exceeding $40 billion, encourages traders to buy aggressively.
A rapid decline in volume (potentially below $30 billion) could reverse momentum, triggering a steep sell-off.
Two months ago, BTC hit $72K before crashing to $49K, causing severe losses across the market.
Impact on Traders:
Both retail and institutional traders are vulnerable to these sudden market shifts.
Many small traders, lacking foresight, risk losing their entire positions.
Market Uncertainty:
Whales, rate cuts by the Fed, and economic indicators like unemployment data often drive these movements.
Critical information only becomes available after the bullish or bearish trend unfolds.
Recommended Trading Strategy:
1. Pause and Observe:
Avoid impulsive trades during unexpected bull or bear runs.
2. In-depth Research:
Use this time to analyze the market thoroughly and study relevant indicators and patterns.
3. Plan Your Entry:
Only trade when you have a solid plan based on complete information and chart insights.
Final Thought:
In volatile markets, patience and preparation are essential. Stay informed, avoid traps, and enter the market only with a clear strategy to minimize risk.
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