Recently, market sentiment has been somewhat turbulent. Jake, head of Wintermute OTC, pointed out that major cryptocurrencies like BTC, ETH, and SOL have all fallen below their respective key moving averages, indicating a short-term withdrawal of funds. This assessment actually reflects a common phenomenon—moving averages are like a barometer of market psychology. Once broken, short-term traders chasing highs and selling lows tend to become more cautious and hesitant.

But there's a detail worth noting: losing the moving average does not equal a trend reversal. Historically, every time such a breakdown occurs, as long as the price can regain this support level, funds tend to flow back quickly, and market vitality is restored. In other words, the current correction might just be a mid-term pause, not a curtain call.

For retail investors, there are two core strategies. If you already hold positions, the key is to maintain your mindset and patiently observe whether the price can reclaim the moving average—this will be the next market indicator. For those who haven't entered yet, it's better to wait until the trend becomes clearer before entering in batches; there's no need to rush.

Market cycles are always playing out: declines often breed opportunities, while rises can hide risks. The current volatility is normal market behavior, so there's no need to over-interpret it.