2025-12-25 05:22:08

Woken up in the middle of the night by a market software notification of a drop, I looked at my phone and was stunned—all the coins I hold plummeted by 30%, and my account net value was instantly halved. This feeling is probably familiar to anyone who has been in the crypto market for a while.

Recently, a friend in the community couldn’t handle the psychological pressure and sold at the bottom, only for the market to rebound 20% the next day. He was completely overwhelmed. Honestly, a sharp decline itself isn’t scary; what’s truly dangerous are the impulsive actions driven by panic.

I’ve interacted with many investors who suffered losses, and their common trait isn’t losing a lot but possessing a bizarre skill—always able to cut losses precisely at the bottom and chase gains at the top. In contrast, those who survive long-term in the crypto market understand one key word: rationality. They know how to stay calm during significant drops and even find opportunities within the chaos.

Here’s a correction to a common misconception: a sharp decline ≠ a bottoming signal. The real opportunity appears when the market **stops falling**. I’ve summarized three practical criteria for identifying a bottom that you can directly apply:

**First, trading volume.** If after a sharp decline the volume begins to shrink, it indicates that panic selling has been fully released, and the market may enter a consolidation phase. At this point, you can cautiously start building a small position.

**Second, market sentiment.** Pay attention to the changes in community and media opinions—shifts from “It’s dropping again, it’s over” to gradually no one discussing it, and news no longer hyping “crypto market crash,” suggest that sentiment has bottomed out. A rebound is often just around the corner.

**Third, project fundamentals.** It’s important to distinguish the nature of the decline: if it’s due to systemic risks in the entire market (macro shocks, policy changes), rather than issues specific to a project (such as contract risks or technical vulnerabilities), then a solid project’s dip is actually a true “bottoming zone” worth focusing on.

Besides monitoring signals, position management during a crash is equally critical. Proper control of your holdings can prevent you from being completely left behind when the market turns around, which is the foundation for long-term steady growth.

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StablecoinEnjoyer

· 10h ago

Really, I was completely numb the moment I was woken up in the middle of the night --- I also know the guy who cut losses; the 20% rebound the next day was truly incredible, and the mentality really had to collapse --- The signal of shrinking trading volume is indeed reliable; I’ve caught the bottom a few times like this --- Still need to stay calm; impulsively cutting losses is really like giving money to others --- The project’s systemic risk and internal issues are well explained; it’s not a one-size-fits-all situation --- I didn’t pay attention to position management before, but now that I understand, it’s already too late --- The community went from "It’s over, it’s over" to no one saying a word; this change is quite accurate --- That’s right, those who survive long-term are the ones who can control their mentality --- That guy’s cut losses at the lowest point was truly tragic; it’s a textbook-level negative example --- Rationality is easy to say, but few can stick to it during a real crash

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OnchainFortuneTeller

· 10h ago

The Meat Cutting Master strikes precisely, I respect you as a real man. I know the guy who sold at the lowest point, he's still heartbroken in the group. To put it simply, you need to control your hand and not let emotions take over your brain. The shrinking trading volume is indeed effective; I've tried it. The key is to distinguish whether the market is crashing or the project is dead—these are completely different. Position management is truly the only reason to survive. The biggest enemy of a person is themselves. Mentality is easy to talk about but hard to practice. I bet five dollars that someone will still cut at the bottom next time. Stop-loss is easy, stopping the heart is hard—that's the real challenge.

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AirdropworkerZhang

· 10h ago

I know that guy who cut losses; indeed, his mentality wasn't right. That's a common problem among retail investors. I'm different. When prices plummet, I sleep soundly. Only the timid chase the rally and cut losses. The point about shrinking trading volume is interesting. I'll try it next time. It's not always possible to catch the bottom; you have to wait until the market sentiment cools down completely. Position management is truly a lifeline. I almost got wiped out when I went all-in before. By the way, how reliable is this set of theories? I still need to explore on my own. I need to screenshot and save these three signals indicating a price bottom.

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MetaverseHermit

· 11h ago

That guy who cut his losses, I know him. He's probably still regretting it now. I just didn't dare to act at the lowest point, but when it rebounded, I made the profit back. This round can be considered the tuition for mental resilience. Really, those who survive are not because their predictions are perfect, but because they stay calm.

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