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Recently, the Crypto Assets market has shown a hot trend, but in reality, there are not many investors who can achieve considerable returns. Many people hesitate in the face of mainstream tokens constantly hitting new highs and small coins taking turns to pump, missing out on numerous opportunities. In fact, there has long been a little-known rule in the Crypto Assets market that every bull and bear cycle cannot escape this pattern. This article will delve into this phenomenon known as the "Doubling Law," understanding it may help you achieve a qualitative leap in wealth in the next wave of market trends.
Firstly, let’s focus on Bitcoin’s "doubling law". Historical data shows that Bitcoin follows a clear pattern during each major rise: the price doubles and then reaches a peak. For example, in 2022, Bitcoin rose from $15,000 to $30,000, followed by a high-level consolidation and correction. Then it rose again from $25,000 to $49,000, and after doubling once more, it experienced another significant drop. This pattern was also confirmed last year when it rose from $50,000 to $100,000, similarly going through a peak and a sharp decline.
Based on this pattern, we can speculate that if Bitcoin doubles from the current level of $74,000, the new peak may appear around $140,000. Therefore, a cautious investment strategy might be: hold until Bitcoin reaches $140,000, and consider taking profits once it approaches this level.
Secondly, the price trend of Ethereum also exhibits a similar "doubling law". The rise and fall cycle of Ethereum is almost in sync with Bitcoin, with each significant increase doubling from a low point before peaking. For example, it peaked after rising from $1000 to $2000, and again after rising from $1500 to $2800. Recently, Ethereum started to rise from $2100 and is now approaching $4000, once again validating this pattern.
For Ethereum investors, if your purchase price is below $2900, the current market conditions are favorable for you. You can set a target price of around $4200. Once this level is reached, you should carefully consider taking profits to avoid excessive greed.
Understanding and applying these market rules can help investors make more informed decisions in the rapidly changing crypto assets market. However, it is important to note that past performance cannot fully predict the future, and investors must still carefully assess risks and allocate assets wisely.