It's crazy! In the past 24 hours, a total of 254,840 traders were liquidated, and the total liquidation amount of the entire network reached 879.75 million US dollars. Cherish your life and stay away from contracts. This time, the long army has been liquidated, and the next one is the air force. From this weekend to next week, we will wait for the rebound market, and the reversal may not work yet.
I am very worried about one thing. Although the correction of Bitcoin is normal, it has risen from 60,000 to nearly 110,000, and the correction to 90,000 is acceptable. But what I am worried about is that Bitcoin is still at a high level, while the altcoins have already jumped. Assuming that Bitcoin cannot hold up here and continues to pull back to 90,000 and 93,000, what will happen to the altcoins?
However, do not chase after a retreating enemy. Coins like ETH have dropped significantly, and a rebound should occur, possibly around 3,600. If your leverage is too high, you can reduce it during the rebound as a precaution. For those with extra funds, consider buying a bit. I think that after such a drop, a rebound should follow, and then you can choose your direction again.
In the worst-case scenario, BTC has a solid support at 90,000, and ETH's support is at the 3,000 mark. Be cautious if you are using leverage. Although Powell's actions caught everyone off guard, I believe that on January 20th, when Trump is inaugurated, there should be a market rally. Therefore, I see this pullback as a necessary consolidation before another rise. I will hold until January 20th; there are still 30 days left, which gives the market ample time to consolidate and recover.
So where are the opportunities to buy the dips in altcoins now?
At this stage, if your positions are not heavy, you can adopt a strategy of buying more on big dips, buying a little on small dips, and not buying when the market is stable to gradually accumulate low-priced tokens.
Currently, the overall market condition is that Bitcoin and Ethereum are supported by spot ETFs and large capital, with a lot of buying pressure below. However, most altcoins lack support from large capital, and once they drop, there are no support levels. It mainly depends on market sentiment. Therefore, it is essential to control your positions well, and there are some techniques for executing your strategy:
1. The top 100 altcoins (market cap over 1 billion) can generally be bought without much issue; it's just a matter of making more or less profit when the altcoin bull market arrives.
2. Moving forward, for the top 500 altcoins (market cap over 100 million), your selection skills will be severely tested. Choosing the wrong ones may cause you to miss the entire altcoin bull market, while choosing the right ones can bring substantial profits.
3. The most important thing is not to open contracts, not to use leverage, and only to buy spot. Even in a raging bull market, using more than 3x leverage is basically like playing with a needle.
If you are optimistic about the market, just hold on; if not, then just run. Both are correct actions. The only wrong action is to chase the highs and sell the lows! We can only be responsible for our own accounts.