The most interesting phenomenon in a bull market is the repeated pattern of slow rises and sharp drops. I personally have deeply felt this in my trading experience. Many people actually don't believe that the current market is a bull market; they always think they need to wait until the market doubles, hits a new all-time high, or several coins increase five or ten times before they admit it's a true bull market. But in reality, the formation of a bull market is something everyone goes through with doubt.

What’s truly fascinating is that the trend of a bull market has already formed invisibly. New funds continuously flow in, constantly pushing the market upward. Even if it gets knocked down in the morning, it gets pushed back up in the afternoon, and before the market closes, there’s always capital entering to support the price. This creates a strange situation: no matter how volatile, it ultimately ends on a rise. Behind this is actually the bulls controlling the overall rhythm.

So you’ll see that the daily gains are actually not large. Because every day, bulls and bears are competing, and when negative news appears, the market quickly digests it, even turning bad news into a positive interpretation. Under such a complex game, this kind of trend emerges: the market rises every day, but sometimes it surges for a day, and other times it only rises slightly for a few days. During this process, a large amount of profit-taking positions accumulate.

The problem is, many people don’t really have a bull market mindset; they just want to speculate once, and as long as they can make money, they’re ready to run. When one day the market suddenly drops and doesn’t quickly recover, these speculators and skeptics of the bull market will collectively sell off, ultimately causing a sharp decline. This is why we always see such extreme market contrasts of slow rises and rapid drops.

In fact, this reflects the immaturity of market psychology. Most people are just following the trend, not truly believing in it. When confidence collapses, a plunge becomes inevitable.