Bitcoin fell by -10% from its historical high, and more than $800 million of liquidations have already formed on the market 🔥
The domino effect of accumulated long positions with leverage shows a living example of why it is better to trade without leverage at the current stage of the market.
❗️In almost every post we warn you that the market is very overheated and a correction may begin at any moment.
But let us remind you once again that during a real correction your task is not to sell your assets taken at good prices, but to hold them.
Also, it is better to use the free cash for ransom.
🤔 Is there a full correction now?
A drop in Bitcoin of just -10% can hardly be called a full-fledged correction, but some alts have already fallen by -15-25%.
Alts always fall harder because they have much less liquidity.
For a normal correction, Bitcoin needs to fall by at least another -20-25% from the current ones. For now, this is just a small pullback within the trend.
Bitcoin is currently trading right along the very important short-term moving average MA20d 🔍
We talked about the work of this indicator in the article 👉 MA20d is your friend in a bull market 👈 Be sure to study it!
If what is happening now is simply a rollback within the trend, then we are already at the bottom and the growth trend will soon continue.
But the main support for the price now is the moving MA20d.
If it breaks through, a full-fledged correction will begin to at least $55,000.
❓ What to do now?
1. If you do not have short-term positions at all, then now it makes sense to open them with stops.
2. If you have free cash of up to 30% of the portfolio, which you hold to buy out a full-fledged correction, then it’s too early to buy now.
3. If you have more than 30% of the cash on hand, then you can buy something that is heavily oversold.
⚠️ As of today, having a cache reserve of at least 30% is a strictly mandatory rule.
The market is still very overheated and now only small time frames have cooled down.
But larger timeframes are still heavily overbought.
The fear and greed indicator still shows extreme greed.
But personally, we think that now is not the start of a full-fledged correction, but the end of the current rollback.
In any case, a strong pullback will sooner or later appear in the market and you need to be prepared for this.
Whether the correction will turn into a full-fledged one or whether we are already at the bottom is unknown.
But in any case, after a real correction, the market will continue to reach new heights.
This means that the most important thing is to hold your positions and not sell them. Of course, this only applies to the spot market.
🤟 Did you like the review or want to better understand cryptocurrencies and technical analysis?
✔️ Then subscribe to the channel and like
➡️#cassius_tradeLook for us on Pavel Durov’s social network. Be sure to subscribe!
#dyor#crypto2024#Bitcoin #Btc
