The large bullish candlestick drawn on the K-line chart may represent an opportunity or a trap. Having been in the crypto market battlefield for seven years, I have witnessed countless wealth creation myths being born, as well as blood-stained stories of overnight bankruptcy.

The case from August last year is still vivid in my memory: a trader started with $125,000, and in four months, the account skyrocketed to $43 million. And the result? It plummeted to $770,000 in just six minutes. This is the rawest truth of the crypto market—it never sheds tears for failures, nor does it repeat past lessons.

When the screen is full of voices claiming "inevitable breakthrough of the previous high," the hidden risks are actually accumulating in the shadows. What I want to say today is not some mystical rule, but a survival guide learned from real money in a "roller coaster" market.

**Washout Phase: Main players are secretly positioning**

Don’t be fooled by the pessimistic voices saying "the industry is about to collapse." The most desperate moments in the market are actually the window for smart funds to quietly bottom fish.

The essence of washout is a psychological war. The strategies of the big players vary: some choose to directly dump the market, causing the price to plunge and create panic; some drag it out sideways, using time to wear down patience; others oscillate repeatedly, making those chasing highs and selling lows suffer the most.

The key signals to identify the bottom of the washout are clear: when the discussion heat drops to freezing point, and even good news is seen as "trap to induce selling," the bottom is near. Professional investors watch the Fear & Greed Index—once it drops below 20 into the "Extreme Fear" zone, it indicates that the market selling pressure has been mostly released.

My practical approach is: set alarms on big drop days and place limit orders in batches.