Crypto: How to deal with prolonged corrections?

Could the party be over for cryptos? After a period of euphoria, correction signals are multiplying, suggesting a lasting slowdown. While this situation slows down some investors, the most optimistic see it as a long-term buying opportunity. Like the analyzes of Daniel Cheung, co-founder of Syncracy Capital, current movements in the crypto market highlight profound changes in the psychology of traders.

Traders and their obsession with the short term

The crypto market is said to be in the red and it has changed a lot: formerly dominated by a “HODL” mentality (hold on at all costs), it now seems captured by traders focused on the short term. Daniel Cheung observes:

“ Participants are constantly looking for quick profits, despite the lack of effectiveness of this strategy in the long term. »

Result : intra-monthly fluctuations intensifymaking market “timing” even more delicate.

The figures speak for themselves: in just 24 hours,The total capitalization of cryptos fell by 5.41%reaching 3.44 trillion dollars. Among the biggest losers:

• Kaia (KAIA), down 31.3%;
• Stellar (XLM), tumbling 28.3%;
• Flare (FLR), which lost 26.9%.

Santiment, an analysis company, however, tempers fears: the corrections could cause a quick rebound for cryptos like TRX, AVAX or DOT. But investors still need to avoid giving in to panic.

Pav Hundal, analyst at Swyftx, adds that over-leveraged traders, caught off guard, suffered massive losses, with $1.58 billion liquidated in 24 hours.

The crypto market, between volatility and opportunities

Faced with such instability, some players remain convinced that the crypto market still offers opportunities to seize. For Daniel Cheung, these corrections, although intense, could extend fallback purchase scenarios :

“ The current lows will likely last much longer than most investors realize. »

Bitfinex, for its part, appears confident as for a alleviation of selling pressures on bitcoin. After a 10% drop last week, their analysts predict less brutal declines in the futurethanks to a loss of steam among sellers and a reduction in profits made.

This climate could favor a gradual and stable recoveryunlike previous cycles marked by extreme peaks and troughs.

However, as Cheung points out, “theThe true peak of this cycle will be reached when the short-term mentality gives way to a long-term vision “. In the meantime, altcoin traders and volatility enthusiasts will have plenty to do, but with caution.

And to navigate this complex landscape, investors can explore at least seven bitcoin trading models, at least one of which looks particularly promising. Good analysis remains the key to maximizing gains and avoiding pitfalls.