After the announcement of the US Federal Reserve's interest rate decision today, the crypto market began to plunge, with Bitcoin dangerously dropping below the 100,000 mark, and Ethereum similarly dropping to 3,617 dollars.
Since standing above 90,000 in this round, there have already been three rapid declines, and today’s drop can be considered the fourth. It can be said that the previous three rapid declines consumed a lot of buying power, so there hasn't been much buying power seen after this drop; instead, there has been a downward trend after sideways movement, which effectively buried another wave of bottom-fishing funds.
In the last 24 hours, liquidations reached 709.43 million dollars, with a total of 249,061 traders being liquidated.
Bitcoin's current trend is not ideal, and the boring market continues. I had already reminded in my review last night that a slight increase would replace sideways consolidation, and we need to be wary of a pullback while waiting for directional choices. In fact, as long as it’s not a crash, a few points of decline are beneficial for the overall long-term bull market, after all, some profit-taking needs to be realized. If you get liquidated over these few points, you really need to reconsider your trading strategy.
Bitcoin is expected to rebound to around 103,000 soon, while Ethereum (ETH) will gradually rise. In fact, making small long-term investments below 3,700 is very suitable. Once the price rises above 4,000, risk-averse friends can consider reducing their positions appropriately and patiently wait for a pullback.
Now, the market has begun to enter 'defensive mode,' and everyone's investment strategies need to adjust accordingly. The market for small coins seems more complex, with a large number of new projects launched every day, averaging more than five, and even one new project emerging every second on-chain. In the face of such a dense project release, investors' funds are simply not enough to spread out.
In the craze for altcoins, people cannot blindly pursue short-term gains while ignoring the real changes in the market. Maintaining rationality and respecting the actual situation of the market is the best strategy to cope with the current market conditions.
Today there is also Japan's monetary policy.
The importance of Japan's monetary policy is greater than that of the US rate cut, because the uncertainty and unpredictability are too high. So how will Japan respond today?
I think we need to see how hard Japan's knee is. If it’s hard, the possibility of raising interest rates is still very high. If there are hawkish statements from the Federal Reserve causing panic in the financial market, and Japan raises interest rates, the market may panic even more. At the same time, the bottom is likely to be formed in the near future. This is when the test of position management comes.
If Japan does not raise interest rates, market sentiment will ease. Today has already seen a bottom, and it will gradually recover.
Overall, the market is full of contradictions. For some retail investors with correct positions, the impact is minimal, and the drop is not large; for those heavily invested in weaker altcoins, it will be very painful.
When facing such significant information, a few points:
1. Do not let the ratio of low long positions and pending orders exceed 15% of the account funds;
2. Set a breakeven loss for positions in floating profit at the first opportunity to prevent profit targets from being unreachable and possibly turning floating profits into floating losses;
3. When falling below the defense point, reduce the margin of the position to 10-15%, and you can lower the average price by adding positions at a lower price. Some people think about cutting losses as soon as they are slightly trapped in low long positions, which is the worst strategy.
If I were to look at previous declines, I would have aggressively reminded everyone that this is an opportunity. But looking at Bitcoin at 100,000, SOL at over 200, and BNB at 700... this position is really contradictory, and this market is completely unpredictable, posing certain risks. In the end, I can only say that both risk and opportunity are equally large here.
Why is this round of the bull market difficult so far:
Because the rise was too fast, retail investors couldn't react in time and dared not chase, leading to buying at the peak.
The drop was too harsh, and once it fell, people said it was completely over, losing confidence.
Playing contracts is even worse, the liquidation happened without stop-loss, and they are not newcomers... There’s no way to persuade them...
After struggling to break even on altcoins, did it fall back again? Quickly enter and exit; those who read my article last night still made a wave of recovery:
USUAL: Original price 0.92, peaked at 1.18
NPC: Original price 0.034, peaked at 0.036
