HODL

when

Kaia

Stellar

Flare

<p>Is the party over for cryptos? After a period of euphoria, correction signals are multiplying, hinting at a lasting slowdown. While this situation may deter some investors, the most optimistic see it as a long-term buying opportunity. According to the analyses of Daniel Cheung, co-founder of Syncracy Capital, the current movements in the crypto market highlight profound changes in trader psychology.</p>
<h2 id="h-traders-and-their-short-term-obsession">Traders and their short-term obsession</h2>
<p>The crypto market is <a href="https://www.cointribune.com/en/bitcoin-crashes-after-historic-high-markets-shaken/" target="_blank" rel="noopener noreferrer nofollow">in the red</a> and has changed significantly: once dominated by a “HODL” mentality (hold at all costs), it now seems captured by <strong>traders focused on short-term</strong> gains. Daniel Cheung observes:</p>
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 <p>Participants are constantly seeking quick profits, despite the limited effectiveness of this strategy in the long run.</p>
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     <p lang="en" dir="ltr">Market participant psychology has drastically shifted in crypto this cycle.<br><br>In prior cycles, participants largely engaged in a HODL and buy the dip mentality.<br><br>This cycle, participants are mostly in a short term / trading mentality and constantly looking to take profits, despite…</p>— Daniel Cheung (@HighCoinviction) <a href="https://twitter.com/HighCoinviction/status/1866005558077137054?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 9, 2024</a>
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<p>As a result: <strong>monthly fluctuations are intensifying</strong>, making market timing even more challenging.</p>
<p>The numbers speak for themselves: in just 24 hours, the <strong>total market capitalization of cryptos fell by 5.41%</strong>, reaching 3.44 trillion dollars. Among the biggest losers:</p>
<ul>
 <li>Kaia (KAIA), down 31.3%;</li>
 <li>Stellar (XLM), plummeting 28.3%;</li>
 <li>Flare (FLR), which lost 26.9%.</li>
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<p>Santiment, an analytics company, however, tempers the fears: corrections could lead to a <strong>rapid rebound</strong> for cryptos like TRX, AVAX, or DOT. But investors must <strong>avoid giving in to panic</strong>.</p>
<p>Pav Hundal, an analyst at Swyftx, adds that leveraged traders, caught off guard, suffered massive losses, with <strong>1.58 billion dollars liquidated in 24 hours</strong>.</p>
<h2 id="h-the-crypto-market-between-volatility-and-opportunities">The crypto market, between volatility and opportunities</h2>
<p>In the face of such instability, some players remain convinced that the crypto market still offers <strong>opportunities to seize</strong>. For Daniel Cheung, these corrections, although intense, could <strong>extend buying-on-dip scenarios</strong>:</p>
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 <p>The current lows are likely to last much longer than most investors imagine.</p>
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   1.58 billion dollars worth of long positions were liquidated in the crypto market over the last 24 hours. Source: CoinGlass
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<p>Bitfinex, for its part, <a href="https://cointelegraph.com/news/crypto-buy-the-dip-moments-last-longer-hedge-fund-daniel-cheung" target="_blank" rel="noopener noreferrer nofollow">expresses confidence</a> regarding a <strong>lessening of selling pressures</strong> on <a href="https://www.cointribune.com/bitcoin-btc-decouvrez-tout-de-la-reine-des-cryptos/" target="_blank" rel="noopener noreferrer nofollow">bitcoin</a>. After a 10% drop last week, their analysts predict <strong>less brutal declines in the future</strong>, due to a slowdown of sellers and a decrease in realized profits.</p>
<p>This climate could favor <strong>a gradual and stable recovery</strong>, unlike previous cycles marked by extreme highs and lows.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://accounts.binance.com/en/register?ref=35547494" target="_blank" rel="noopener noreferrer nofollow">Your 1st cryptos with Binance</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
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<p>However, as Cheung points out, ” <em>the true peak of this cycle will be reached when the short-term mindset gives way to a long-term vision</em> “. In the meantime, altcoin traders and volatility enthusiasts will have their work cut out for them, but with caution.</p>
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<p>And to navigate this complex context, investors can explore at least seven <a href="https://www.cointribune.com/quelques-modeles-de-trading-sur-bitcoin-btc/" target="_blank" rel="noopener noreferrer nofollow">trading models on bitcoin</a>, of which at least one seems particularly promising. Good analysis remains the key to maximizing gains and avoiding pitfalls.</p>

Crypto: How To Deal With Prolonged Corrections?

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