This morning's market showed a correction, with Ethereum dropping from around 3800 to 3510, and many altcoins generally also fell by 20-30%. If you had reduced your positions earlier, you would not have suffered much. If you didn't reduce, then this wave could have trapped you. So check your holdings and find corresponding support levels to lower your costs. This wave has cleared almost 2 billion in leverage; on August 5, it cleared only 1.1 billion, marking the largest liquidation recently. After this wave of deleveraging, the funding rates for altcoins have returned to normal. It is easy to imagine how much FOMO many retail investors have experienced during this bull market; the number of people using leverage should be at an all-time high. Once the market experiences an extreme move, none will escape. I have always emphasized not to touch contracts; I hope this wave did not hurt those who regularly read my articles. In a bull market, the most important thing is the principal! With capital, you have the qualification to seize opportunities. Leverage liquidation means you are out! This drop had no obvious negative news; overall, this drop's main purpose was to clear leverage, and since ETF inflow data did not appear in a timely manner, Ethereum's outflow reached over 5 million around 10 o'clock. So far, Ethereum's ETF data has shown a net inflow of 140 million, which means the current market is relatively safe. Other so-called reasons are not reasons.
In summary, this wave of decline is entirely due to emotional factors combined with deleveraging. Last night, US stocks also fell, and the outflow data caused emotional reactions. Excessive leverage caused the morning's market situation. Deleveraging is all about preparing for future market movements. After this wave of deleveraging is completely over, Ethereum and altcoins will enter a period of acceleration. The bull market trend is still there, no need to panic. For the bull market to be healthier and higher, there must be a deleveraging phase. This bull market is different from previous ones; there is no background of large liquidity, and capital is more cautious. To pull the market up, we must first 'reduce the burden.' High leverage is a burden on the market; it must be cleared to proceed lightly. After the flash crash, the funding rate for altcoins has returned to normal. The purpose of deleveraging has been achieved. We can see that BTC hasn't really dropped much; it's stable as a mountain because it doesn't need to deleverage, the logic is clear. Currently, Ethereum hasn't broken its historical high, which proves that the acceleration of Ethereum is yet to come. Most altcoins are still at the bottom. The bull market allows capital to enter, not for retail investors to run away. After the flash crash, the market will recover for a while before welcoming an acceleration phase.
After the flash crash, which altcoins are worth paying attention to?
This flash crash also provided an opportunity for those who haven't bought strong coins before. Boss Crab has compiled a few altcoins with a relatively high certainty for everyone's reference:
1: ETH, this month's Ethereum online meeting will have updates, and with ETFs having a net inflow for half a month, the upgrade in March next year, and Trump's policies expected to loosen after taking office in January, ETH's ETF stake launch is basically the arrival of an accelerated main wave! For reference, you can place orders in batches around the 3550-3500 level, and pay attention to position allocation. The goal should be set at new highs and 8000!
2: SOL, SOL is expected to be the first altcoin to launch an ETF. The Solana ETF applications submitted by four institutions on January 25, 2025, will undergo review. In the past two years, the SOL ecosystem has kept up with the meme craze, developing wif, bome, and more from the chain... So besides Ethereum and BNB, SOL remains the top choice for long-term altcoins due to its solid ecosystem and ETF expectations. For reference, around 200-205 is a good area to place orders in batches. Be cautious with position control; the goal is new highs. If the ETF is launched and it rises to 500, it wouldn't be surprising!
3: DOGE, the trend of Dogecoin has not ended. Elon Musk's DOGE minister will officially take office in January, and at that time, Dogecoin will open a wave of upward momentum. Dogecoin has been shouted out by Musk repeatedly, and it has already risen several times from the bottom. For those who exited midway, including those who haven't boarded yet, there is still an opportunity to share in the profits. Although Dogecoin's market cap is relatively large, there is still room for it to double at new highs. For reference, you can buy a portion around 0.4, and place remaining orders around 0.36 to lower the average price. On one hand, we fear that Dogecoin won't give opportunities starting with 0.3; on the other hand, we must strictly control our positions and not go all in at one point. Control your positions well; at least consider reducing 50% in the wave. If you can hold, at least hope for a new high.
4: pepe, we built our position in pepe last year, and this year it feels like we are reaping the rewards from beginning to end. Although the base position has been reduced to very little, it is still a piece of fat meat. A profit of 10 times looks very appealing, but it hasn't been easy for us to achieve this along the way, experiencing several rounds of market fluctuations. How many people were washed out in the process? As for those who were washed out before and those who haven't boarded yet, they can refer to position 2-118, place an order to catch it, and I won't lose with zero. Watching the market every day has made my eyes hurt. You just need to understand what I mean by the pepe position. If you catch it, I still say the same thing, you should exit at least 50% during the wave. Long-term, hold it until it doubles to recover the principal, and use the profits to continue aiming for 5 times the space. Based on the current market's capital scale, declines in a bull market are opportunities to increase positions and board. Plus, since some news has not materialized, theoretically, the more leveraged washing occurs, the higher the market will go. At 0:30 on December 11, Beijing time, Microsoft will advance a significant shareholder proposal regarding Bitcoin—specifically, to assess through shareholder voting whether including Bitcoin on the balance sheet aligns with the long-term interests of shareholders. Let's wait for the arrival of a miracle!
#加密市场回调
