The essence of the financial market: it's like a giant spring

The higher it stretches, the crazier the rise, the more overvalued it becomes, and the greater the subsequent backlash and sharp decline;
The tighter it is compressed, the deeper it falls, the more extreme the panic, the more energy is stored at the bottom, and the more vigorous the rebound afterward.

The core is mean reversion: there is no market that only rises and never falls, nor one that keeps falling endlessly.

There are two points to watch:
1. Spring-like rises and falls are asymmetric; a bull market can stretch for a long time, while a bear market's slow decline to bottom can be more exhausting, and time will never be perfectly proportional;
2. Policies, interest rates, and liquidity are external forces that can temporarily hold or leverage the spring, disrupting short-term rhythms. Don't stubbornly fight mechanical symmetric rises and falls.

Understanding the spring logic—avoiding chasing top bubbles, not cutting through bloodied chips at the bottom, patiently waiting for the opposite opportunity after extreme tension—is the simplest survival strategy in trading.
#弹簧理论 #BTC #Cryptocurrency