These past couple of days, the market has indeed been in the red. BTC dropped to $89,726, a decline of 2.04%; ETH fared even worse, at $3,082, down 3.51% in a single day. Even USDT was not spared, slipping slightly by 0.08%—even stablecoins are jittery, indicating the market is indeed experiencing volatility.

I looked at the market data, and in just two days, BTC + ETH have evaporated nearly a trillion dollars in market cap. This number is truly staggering, equivalent to the disappearance of a sizable tech company from the market. BTC’s 24-hour trading volume reached $42.6 billion, what does this tell us? Both bulls and bears are engaged in fierce battles—some are fleeing, but institutions are quietly accumulating.

The most interesting is ETH’s performance—its decline is noticeably larger than BTC’s. In such situations, it’s important to watch out for the "big brother resting, little brother following" correlation risk. Smaller tokens are usually more emotionally driven and tend to fall harder.

**But is this really a collapse? My view is: no.**

This is a normal, healthy correction in a bull market. A sharp drop is like pouring cold water on an overheated market, washing away short-term weak hands, allowing the market to stabilize and sustain itself better. This tests one’s mental resilience the most.

If you are currently holding a heavy position, I suggest holding steady and not being scared out by this volatility. If you are in cash or lightly positioned, this could be a good window to buy in stages—just don’t go all-in at once. Risk always exists, and diversifying your entries is the smartest approach.

From a technical perspective, BTC’s key support levels are around $86,000 to $87,000—areas with high previous trading volume. As long as this level holds, the upward trend remains intact. For ETH, the $3,000 mark is a psychological threshold that many traders are watching. If it truly breaks below, the next significant support is around $2,850, calculated based on Fibonacci retracement levels.

Volume is also a critical indicator. Currently, the decline is accompanied by high volume, indicating short-term selling pressure is being released. Conversely, sustained high volume also suggests active turnover, with bottom-holders gradually locking in their positions.

On the sentiment front, the market’s fear and greed index has shifted from the "greed" zone back toward the "neutral" area. This might sound negative, but for long-term investors, it’s actually a better entry point. Buying during greed often means catching the top.

**How to operate specifically?**

If you are a spot trader, you might consider placing buy orders around BTC $87,000 and ETH $2,950, executing in stages to average down your cost. For futures traders, my advice is not to chase short positions now. Wait for a rebound—see if it can rally back to resistance levels like BTC $91,000 before considering shorting at higher levels. Of course, stop-losses are essential—this is the baseline.

If you’re a dollar-cost averaging (DCA) investor, treat these fluctuations as non-existent, stick to your plan, and continue DCA long-term. Over time, you’ll enjoy the bull and bear markets.

In summary, don’t panic. This is not a crisis; it’s another form of opportunity. The market always tests your conviction and decision-making. Stay calm, deploy in stages, and that’s the right approach to navigate through bull and bear phases.