Today’s market experienced a sharp decline, and many people are starting to feel nervous. However, if you look at on-chain data, you'll find that the reactions of big players are quite interesting.

From the movement of major funds in BTC and ETH, the situation is quite polarized. Some addresses are heavily opening long positions at lows, attempting to catch the bottom; others are closing positions to take profits. The most representative is that big player who has been bearish—they closed their BTC short positions today and earned over $2 million, but didn’t fully exit the market—they still hold an open short position of 68,000, indicating they still retain a bearish outlook.

Meanwhile, another group of major players has shifted from short to long, with some accounts directly rushing to the top of a certain DEX’s BTC long position leaderboard. Large capital divergence itself is a signal: the market has yet to find its direction.

For ordinary traders, this is the easiest time to make mistakes. Big players can withstand large drawdowns and continue to add positions; but retail investors have limited capital, and going all-in impulsively can easily lead to liquidation.

A more prudent approach is: try small positions in batches now, rather than investing all at once. Keep enough cash reserves and consider increasing positions only when the trend becomes clearer. During volatile times, observe more and operate less—keeping a calm mindset is more important than frequent trading.

Remember one thing—there will be many crashes in a bull market, and these can actually be opportunities to build positions. But the prerequisite is that you survive until that moment. Stay rational when the market screams, follow the smart money’s strategy, but ultimately, the decision-making power still rests in your hands.