Bitcoin's flash crash exposes the divergence between new and seasoned traders: the HODL strategy may become a market trap, with Solana, Ethereum, and Cardano as the focus of recovery.

The latest report from 10x Research emphasizes the widening gap between experienced Bitcoin traders and the new generation of “HODL” investors. Experienced traders rely on proven indicators to decide when to take profits and exit, while newcomers mainly base their decisions on long-term optimism. The report warns that traders who lack strategy and rely solely on emotions often end up suffering losses. The flash crash of Bitcoin is viewed by analysts as an overreaction by the market, with funds refocusing on fundamentally strong assets like Solana, Ethereum, and Cardano.

Experience vs. Emotion: The Strategy Differences Between Mature Traders and “HODL” Believers

10x Research believes that the biggest difference in determining whether to profit during major market cycles lies in experience and strategy.

· Novice blind optimism: Many recent entrants to the Bitcoin market base their trading methods on long-term optimism rather than market data. They tend to hold their positions during significant pullbacks.

· Precise decisions by veterans: Experienced traders rely on mature indicators to determine when to take profits and when to exit. They often choose to sell during market euphoria.

· The market is like roulette: The report compares speculative altcoin trading to a pure game of chance, like roulette. Traders who act without thinking will ultimately suffer losses due to relying on emotions rather than strategy.

The Logic of Bitcoin Trading: Three Signals Determine Success or Failure

The report emphasizes that although Bitcoin's environment is more structured than that of altcoins, precise timing for getting on board and exiting is still crucial.

· Risk Management and Positioning: Altcoins lure many retail investors into risk positions that lack clear fundamentals or timing signals, while Bitcoin provides a more structured environment that allows traders to use established indicators to manage risk and position for long-term gains.

· Three key indicators: 10x Research emphasizes that there are three key indicators that are crucial for identifying when to enter or exit the market, and these indicators can distinguish between strong buyers and those caught in traps.

· Warning: The report concludes that, in the context of volatility returning and retail sentiment tending to “HODL forever”, traders should “act with precision rather than emotion”, and remember that patience and timing are the factors that distinguish winners from long-term holders.

Flash Crash Analysis: Market Reset After Short-Term Overreaction

(Source: Glassnode)

Analysts believe that the recent flash crash of Bitcoin is a short-term overreaction of the market to external factors, rather than a reversal of long-term trends.

· Liquidation and Sell-off: The price of Bitcoin dropped from $122,000 to $101,000 after the escalation of tariff tensions between China and the United States, liquidating over $19 billion in leveraged positions.

· Institutional Bottom Fishing: Glassnode data shows that despite short-term traders exiting, institutional buyers are starting to accumulate again near the $110,000 area.

· Necessary market reset: Analysts describe this move as a “necessary market reset.” Although ETF inflows have slowed, they remain positive, indicating hesitation rather than panic. Analysts believe that Bitcoin can consolidate between $108,000 and $117,000, laying a more stable foundation for the next round of rebound.

Capital Rotation: Solana, Ethereum, and Cardano Become the Focus of Recovery

As Bitcoin's volatility cools down, funds are rotating into alternative assets with strong fundamentals, with Solana, Ethereum, and Cardano becoming the main recovery candidates.

· Solana's banking and B2B payment penetration: Solana's decentralized exchange daily trading volume reached 6.16 billion USD, with strong network demand. Its growth in the Asian ecosystem is driving institutional adoption and strengthening its position in crypto banking and B2B payment systems.

·Ethereum's deep accumulation: Despite a 8% drop in Ethereum over the week, developer and institutional accumulation continues. BitMine Immersion Technologies added $417 million in ETH to its finances, leading in active developer numbers. The expansion of Layer-2 networks and the leadership in DeFi continue to attract capital.

· Expectations for Cardano's upgrade: Cardano is advancing the Hydra scaling solution and the Chang Hard Fork. The Conway genesis file introduced by the latter is key to achieving on-chain decision-making and decentralized governance. The anticipated technological upgrade positions it to be a top performer in the next market phase.

Conclusion

The Bitcoin flash crash is seen as a short-term market cleansing that has cleared excess leverage for the next phase of growth. A report from 10x Research reminds investors that strategy and timing are far more important than blind faith. As Bitcoin consolidates in a key range, and assets with solid fundamentals like Solana, Ethereum, and Cardano welcome adoption and technological upgrades, the market is expected to achieve healthier structural growth.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions cautiously.