Yesterday a friend told me: "I think this time $BTC has really hit the bottom, ready to buy the dip."
I laughed.
Brother, do you know what stage of the bear market we are in right now?
Many people have not understood what stage of the bear market we are in and are talking about hitting the bottom, which is really embarrassing. Let me educate you on the reality: all bear markets are divided into 5 stages, and we are currently only in the transition between stages 1 and 2.
Stage 1: Making people truly believe the bear market has arrived. Generally, the decline is between 40%-50%, the so-called halving, which has to make everyone feel the pain once. The characteristic of this stage is: people are still shouting "buy the dip", still believing in "technical support".
Stage 2: Making people doubt that the bull has not left. Generally, it will recover half of the lost ground, and during this process, many speculative projects will emerge. Do you remember those running shoes from back in the day? They are products of this stage. The market will give you hope, making you feel "see, I told you it's fine".
Stage 3: Falling to the point where everyone doubts life. Real DeFi liquidations occur, whales fall, and star projects crash; at this time, it should fall 70%-80% compared to the peak. This is the true period of despair, and friends start saying "I will never touch coins again".
Stage 4: The final divergence in sideways movement. It goes sideways until everyone thinks the bottom has been built, and then positions are established. This stage is the most tormenting because it looks very stable, but in reality, it is the calm before the storm.
Stage 5: The final drop. By the end, those who still have faith will cut their losses. This is the true bottom, but by then, very few people dare to buy.
So far, it is clear that we are still at the end of the first stage. If you have lost money at this stage, do not feel discouraged now.
The real pain has not yet begun.
But this also means that the opportunity has not yet arrived. Hold on, wait for the opportunity to turn things around in stage 2. Remember this: the market isn't out of money, but lacks patient investors.
Don't rush to buy the dip; the bottom is never formed in a day.
