Market Correction: Opportunity or Risk? Powell's Remarks Trigger Major Market Turmoil

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Today's market saw a significant drop, with the Nasdaq index plummeting 3.61%, nearing its largest decline in recent years. Bitcoin also fell victim, with a drop of 5%. All of this stems from Fed Chairman Powell's hawkish remarks, particularly his statement that the Fed cannot hold Bitcoin, which directly intensified panic in the crypto market.

Powell indicated that the rate cut next year might be limited, leading to a sharp decline in various assets. Although Bitcoin's drop is roughly the same as the Nasdaq's, the market remains volatile. From a technical perspective, Bitcoin has already fallen to a critical support zone on the four-hour chart, and unless extreme events occur, the downside potential is limited.

The Power of the Futures Market

I personally believe that this 'crash' is more due to the strong influence of the futures market. Data shows that recently over 270,000 trading accounts worldwide have been liquidated, with losses reaching up to $780 million. These liquidation figures indicate that market sentiment has been overly optimistic, and leveraged trading has brought considerable risk.

A pullback of over 30% for Bitcoin is not uncommon, and the current drop is only about 9%, meaning the market has not entered a bear phase. Altcoins have also followed the major market correction, and although short-term losses are significant, they may present new opportunities when the market rebounds.

Current Strategies and Buying Opportunities

PNUT: Recently, the price increase did not meet expectations and has fallen below $1. It is recommended to accumulate in batches in the range of $0.5-$0.7.

JTO: If it drops below $3.3, consider accumulating in batches. This coin has quick fluctuations, and there are many opportunities when it rebounds.

RSR: If it retests below $0.012, it is suitable for batch accumulation, and after the adjustment ends, there could be a strong rebound.

DOGE: Staying above $0.33 is relatively safe for fluctuations; if it drops below, it might test $0.27, which would be a good opportunity to add to positions.

SOL: If it drops below $200, it is a good buying opportunity. SOL has strong rebound potential, so don’t be afraid to buy.

Although the market correction makes people anxious, there is no need to panic excessively. Corrections are normal in a bull market; as long as you manage your positions and control risks well, you can still find buying opportunities in the fluctuations. Now is the time to stay calm and wait for the next wave of increase.