The market trap is quietly approaching: signals of an imminent decline in Bitcoin and other crypto assets

The cryptocurrency market is showing insidious signals that may indicate an approaching serious correction. Amid the growth of global assets, the crypto industry remains stagnant, which historically preceded a critical decline. It’s time to understand the possible scenarios and prepare for the risks.

Double Top: History Ready to Repeat

The technical picture of BTC shows alarming parallels with previous cycles. The last peak was characterized by the formation of a double top, after which a two-month rebound occurred, which many traders mistakenly took as the start of a new bull market. However, it was just a trap — a false breakout before a massive crash.

Today, we observe a similar picture. Bitcoin has approached the level of $82.34K (current price), but the history of cyclicality and market consensus suggests this could be another testing point before a fall. Each time, market participants claim that “this cycle is different,” but discipline and market laws punish those who do not follow them.

Four-Year Cycle: An Unchanging Pattern

The crypto market is governed by a clear cyclical process lasting approximately four years. This is no coincidence — it is a structural feature of the industry related to halving events and macroeconomic cycles. The warning sign is that we are most likely in the final phase of the current cycle.

Observations show: when previous cycles approached their end, a consolidation period first formed, then a small rally that lured in new investors. Then the market punished them. There is no reason to think this time will be different. Traders who maintain discipline and recognize signals will gain advantages; others will remain on the sidelines at higher levels.

Global Assets Rise, Crypto Lags — This Is a Red Flag

The most direct confirmation of the falling hypothesis is the divergence between global assets and cryptocurrencies. US stocks continue to rise, gold holds its positions, but the crypto sphere remains relatively weak. This in itself is a powerful danger signal.

When US stocks begin to correct (and economic data suggest it’s only a matter of time), the crypto sector could face a much larger decline than most participants expect. Capital outflows from risky assets are happening gradually — quietly, without dramatic news. Such a scenario is already quietly developing.

Hedging Strategy: Short Positions at Support Levels

For those still holding long positions, partial closing near peak levels should be considered. Based on technical analysis, shorting at resistance levels is a sensible risk management tactic.

A specific operational example demonstrates the effectiveness of this strategy: when BTC approached the $9,800 mark (in previous cycles), opening short positions with partial closing at $9,500 allowed locking in profits in the short term. Long-term hedge positions remain in the portfolio to participate in a more significant decline expected in the next one or two months.

This approach allows taking advantage of both upward and downward movements, with a primary focus on capital protection during periods of uncertainty.

Altcoins: Selecting the Best Opportunities

The current market configuration opens selective opportunities at lower levels. For example:

• WLFI (World Liberty Financial) is trading at $0.15, showing potential for hedging through short positions during correction
• ZEC (ZCash) is trading today at $332.63; historical data shows higher volatility for this asset, making it attractive for wave traders

The key to success lies not in luck but in experience and a systematic approach. Every day, the market provides 1-2 clear opportunities to enter positions at support levels. Competent traders catch these signals, earning profits from correctly recognizing formations.

Conclusions: Discipline and Patience

The market is quietly preparing for correction, but these signals are visible only to those who have studied history and understand cyclicality. A clear strategy should develop:

1. Take profits at peak prices
2. Prepare short positions for a retest of the top
3. Avoid closing positions at the absolute peak — the process will take a month or two
4. Monitor divergence between global assets and cryptocurrencies
5. Respect market discipline, and the market will respect you

The fact that long positions remain relevant for long-term investors does not negate the reality that short-term correction waves will be harsh. Prepare now while signals are still mostly hidden from the public. This way, you can not only protect your capital but also gain additional profit from the quietly approaching fall.