The rules of the crypto world are brutal—there are no chosen ones, only traders who accurately time the cycles.

Today’s BNB movement is a typical example. From an intraday high of $960, it plummeted to around $894 within a few hours, completely breaking through the lower Bollinger Band. Such speed and force left no room for the bulls to buffer.

Interestingly, just the day before, BNB completed a quarterly burn of 1.37 million tokens, destroying $1.277 billion worth. Theoretically, this positive news should have provided support. But what actually happened? We saw this phenomenon: a slight rebound after the good news release (yesterday reaching $930), attracting retail traders to chase the high and buy in, only to be dumped on immediately. This is a classic trap to lure in buyers.

From a technical perspective, RSI and KDJ have indeed entered oversold territory. But here’s a key misconception—many think that oversold automatically means a rebound is imminent. What about that wave in October last year? BNB fell from $1200 to $800, with RSI even lower than now, yet it still declined for another half month before finding a bottom. Oversold conditions are not a guarantee of reversal; they merely indicate that selling pressure has become extreme.

The essence of this decline is that the big players, through hype and technical patterns, are诱使追高的人被套 (luring high buyers into traps). Traders who realized the risk at the $920 level should now be grateful they exited early.

The market is always testing your psychological resilience and decision-making speed.