These past couple of days, the crypto world has indeed been quite lively. BTC just lost the $97,000 level, with over $599 million in liquidations in 24 hours. Many retail investors are struggling with one question: is now the time to buy the dip or to catch the bag for the whales?

To be honest, many people can't tell the difference between the two. On the surface, both seem like low-price entries, but the underlying logic is completely different.

**How to determine if you're bottom-fishing or catching a bag?**

Just look at three aspects.

First is position and trend. When does true bottom-fishing occur? During a long-term decline, with trading volume severely shrinking, and technical indicators showing bullish divergence signals—that's when it's actually bottom-fishing. Conversely, if prices are accelerating upward at high levels, sentiment is overwhelmingly bullish, and many are hyping it up, then you're basically catching a bag. With BTC at this level, just after a high, is it stabilizing or continuing to crash? It's still uncertain.

Second is the funding situation. The saying "a bottom forms when the price hits the ground" is correct, but you need to see who is buying and who is selling. If there's net inflow from big players and retail investors remain rational, that's supported by funds. But if there's high volume at high levels, with big players quietly distributing, and retail investors still FOMO buying, then it's dangerous.

Third is sentiment and valuation. Entering during panic often makes money; if everyone is bullish and still pushing higher, it's likely the last wave of buying.

**So what should you do now?**

If you haven't entered yet, don't rush. Wait until BTC stabilizes above $98,000 to confirm a rebound, or drops back to the support level of $93,000 before gradually entering. Don't go all-in at once; build positions slowly over 3 to 5 batches. Keep individual positions below 15% of your total funds. Even if your judgment is wrong, losses will be manageable.

For those already holding positions, consider reducing. If BTC drops below $95,000, cut losses—don't hold onto hope. The crypto market is so volatile that a 10%-15% stop-loss is enough for retail investors.

One final tip: absolutely avoid leverage. While leverage can amplify gains in good markets, the $599 million liquidation over the past two days shows that once the trend reverses, leverage becomes a meat grinder.

This is the current market situation—high volatility, euphoric sentiment, increased risk. Retail investors' blind bottom-fishing has low success rates. Instead of gambling on luck, wait for clearer signals. Gradual entries, stop-losses, and avoiding leverage are three disciplines that are more crucial than any technical indicator.