Litecoin (LTC) has also started to accelerate upwards, and the second half of a bull market is usually like this, where prices often rise suddenly without any apparent reason.
Looking back at the last bull market, when Bitcoin broke new highs, it surged to 41,000, and Litecoin followed suit, reaching 180 dollars.
However, the market then experienced a significant crash, with Litecoin falling nearly 40%.
Therefore, the current rise in the market, although seemingly without clear reasons, also indicates that a similar major correction may come in the future.
Thus, we must remain vigilant, especially focusing on the following three data indicators:
Fear and Greed Index: When it exceeds 90, the market may be approaching its peak.
Funding Rate: When the rate reaches above 0.07, it also indicates that the market is overheated.
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Annualized Lending Rate: When the annualized lending rate on platforms like BN and OK reaches above 40%, it may mean the market is overly leveraged.
Especially for Litecoin, when its price breaks above 150 dollars, it could be an important warning signal.
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In light of the above indicators, we should always remain vigilant and be ready to withdraw in a timely manner when the market reaches a local peak.
From a personal perspective, I believe January may see a round of downward adjustment, and we can seize this opportunity to make appropriate portfolio adjustments.
In the cryptocurrency circle, everyone knows that market fluctuations can often be as astonishing as the upward trends, and risks and rewards always go hand in hand. Therefore, profits and losses stem from the same source; operate cautiously.