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Currently, we are in the early stage of a bull market. So, what is a bull market? Simply put, a bull market refers to a period of sustained market growth, like a bull pushing prices higher with its horns. However, even during a bull market, prices do not only rise; they also experience declines. Throughout the upward cycle, there are two to three significant adjustments, similar to taking a few steps back while climbing, recharging energy to surge forward again.
In this process, there are three points to understand:
1. Attracting new investors: Market declines reflect that the previous rally has become somewhat exhausted, and the market needs new investors to drive the next wave of growth. These new investors are usually attracted by the previous surge and subsequent explosive growth, and their participation can help restore market momentum.
2. Declines for better rises: Adjustments within a bull market are actually part of healthy market development. They filter out less committed investors, allowing more steadfast investors to acquire more tokens at lower prices. This is commonly known as a shakeout, which aims to reorganize market strength and prepare for a larger rally.
3. Gaining more tokens: In financial markets, money doesn't truly disappear; it simply shifts from one party to another. Market declines give confident investors the opportunity to buy at lower prices and accumulate more tokens. Therefore, for us, every dip in a bull market is a good opportunity to add positions gradually.