The Christmas crash usually happens in a bear market, and it's rare to see such a severe crash during a bull market! This decline has no obvious negative reasons, and the timing is suspiciously at 5 AM. A comprehensive judgment indicates that the main purpose of this decline is to clean up leverage, and all other so-called reasons are not reasons at all. This wave of decline has cleared nearly 2 billion in leverage; on August 5, only 1.1 billion was cleared, which was the largest liquidation recently. After this leverage clean-up, altcoin funding rates have returned to normal. Last night, the market followed the panic selling of U.S. stocks, dropping to about 94,000. Although it found support, it still needs to be repeatedly verified. It seems this position will inevitably undergo short-term adjustments and fluctuations for about 1-2 weeks. Cleaning up leverage is all about preparing for future market movements. After this leverage clean-up is thoroughly completed, Ethereum and altcoins will enter an acceleration phase. The bull market trend is still intact, so there's no need to panic; spot trading may have losses, but we can endure.
Is a deep correction perhaps the best entry point?
This year's trend seems to have replicated the movements of 2023, taking off in October, consolidating upwards in November and December, and then peaking in January when the ETF limits are reached. Coincidentally, this year also took off in October, and we are currently in a phase of upward consolidation. In January, with Trump taking office and Musk joining DOGE, we might perfectly replicate the 2023 trend. Additionally, there's a favorable piece of information for Bitcoin: Microsoft will hold a meeting today to discuss whether to purchase Bitcoin; if approved, Bitcoin is expected to surge again, and altcoins will definitely benefit from it. Looking at the big picture, major cryptocurrencies, including popular altcoins, may reach their peaks in January. For short-term traders, we should wait for the results of the Microsoft meeting. For those in the market, hold on tight and don't ask where the altcoin bull is; perhaps we are already in a bull market.
My views are:
1. The bull market has not ended!
2. The altcoin season has not yet arrived!
3. In terms of altcoins, we can focus on strong coins; every significant drop is an opportunity to increase positions.
