The cryptocurrency market was like a roller coaster last night. It quickly reached its previous high and then went down all the way, plummeting 15 points. The copycat coins soared 20 to 30 points, wiped out billions of funds on the entire network. I hope no one has been liquidated.
In fact, I mentioned in the previous article that the market will not plummet, but there will be a small spike in the near future based on historical data. Sure enough, I guessed everything right. Unfortunately, too few people read my article. Brothers who want to know more can take a look.
Let me repeat the reasons briefly. In short, there are too many people chasing high prices recently, but there are always some unfavorable advice. Look at the funding rate of Auntie Dabing and the interest rate of borrowing coins on the platform. The funding fee has increased from 0.01 to 0.1, and the annualized interest rate of 30-day loans is as high as 123%. What the hell is this? So in this situation, we can only use pins to clean up high leverage, because the currency circle is going to break the previous high and hit a new high. Otherwise, it will be too heavy to climb the slope. This is why it is said that the market that has been rising is unhealthy. This wave of mainstream basically let those who chased high prices more than 10 times get off the bus, and the copycats can basically clean up those who have more than 5 times, making the load on the bus lighter.
Finally, I still want to remind everyone that I think it may not be suitable to open a high multiple now, and you can wait and see. Why? Because after this kind of pin, the fee rate of many coins is still quite high, which means that some people may not chase highs at the top of the mountain, but get on the train on the mountainside. Whether these people can stay on the train depends on the ratio of people who bought the bottom last night and the number of people who got on the train on the mountainside, and whether the market will kindly retain those who got on the train on the mountainside. In short, I suggest that you observe it. At least I think there will be no sharp rise in the near future, and there may even be another small pin. The above are all personal guesses. Everyone should watch rationally. If you find it useful, I hope you will like and support it. Thank you.
I wish you all financial freedom in the Year of the Dragon!