Human nature remains unchanged, and so does the market. This phrase is especially poignant in the cryptocurrency field.

Every time we look at the charts, we are full of confidence, feeling that we have grasped the trend. But reality is often the opposite—buying leads to a drop, selling leads to a rise, like a marionette being played with. This vicious cycle seems impossible to escape.

Today, I don't want to discuss complicated technical indicators. Let's talk about the most core question: how are trends formed? Understanding this is the key to truly standing firm in this crazy market.

**The Game Behind the Market: Smart Money vs. Retail Investor Sentiment**

There is a saying in traditional finance: "Smart money" drives the market. In the cryptocurrency world, this pattern is even more obvious. The so-called smart money here isn't mysterious big players, but a group of experienced, keen-sensed professional traders and institutional investors.

They are always one step ahead of the public. Their tactics follow patterns: panic buying during downturns, selling during craziness. The high volatility of the crypto market and global trading make these patterns particularly evident.

Remember the crypto winter of 2022? Bitcoin plummeted from its high, with market value dropping below $1 trillion, and the market was filled with cries of despair. Ordinary people sold in panic, but smart money quietly accumulated at low levels, preparing for the subsequent rebound.

**Four Key Stages of Trend Formation**

**1. Accumulation Phase: The Golden Window in Crisis**