The day before yesterday, I reminded everyone that the market might be about to correct. As a result, Bitcoin really plummeted, and nearly 300,000 people were forced to close their positions. It was a horrible sight!
In fact, there are two main reasons for this plunge:
One is that the Federal Reserve’s interest rate cut plan for next year is not strong enough, which has caused bad luck for the U.S. stock market and Bitcoin as well;
Another thing is that Federal Reserve Chairman Powell said that they will not buy Bitcoin and do not want to change the law.
But I think these two problems are temporary and the market will digest them after a while.
Let's talk about today's daily $BTC market analysis. From the K-line, the 1-hour level is down, the 4-hour level is down, the 12-hour level is down, and the daily level is down. The intraday pressure level is 99,000 and the support level is 94,000 US dollars. Note that 95,000 is an important key position! !
“The price keeps falling? Now is a good time to buy at the bottom! How to make accurate layout when the price of the currency is low and make a lot of money!”
The harder it falls, the more you buy in: it is actually a chance to rebound. A strategy to buy more assets when the market is down. The basic idea behind this strategy is: if you believe in the long-term value growth of a crypto asset, then buying it when the price falls is actually an opportunity to "buy low and sell high". However, in practice, this strategy has both potential and risks, and multiple factors need to be considered to make a decision.
1. Market sentiment and volatility
The cryptocurrency market is very volatile, and sharp price fluctuations are sometimes closely related to market sentiment and short-term events. For example, a sudden turn for the worse in market sentiment may be caused by news events, government regulation, hacker attacks, project party breach of trust, etc., which leads to a sharp drop in prices. If the price drop is just a short-term emotional reaction and the fundamentals of the project have not changed, then it may be a good opportunity to buy at this time.
However, if the reason for the price crash is that the fundamentals of the crypto asset have fundamentally changed (such as a project failure or technical problems), then buying on the decline may just be a failed "bottom-fishing" and ultimately result in a greater loss. Buying into zero-value coins without thinking is simply a waste of time!!
2. Fundamental analysis
The strategy of "buy more when the price drops" is only suitable for projects that you are confident in and understand. After in-depth analysis of the fundamentals of the cryptocurrency, you can understand the team, technology, application scenarios, community support, etc. behind it. A good fundamental can support long-term value growth.
-Team background: Does the project's development team have extensive experience? Do they have execution and innovation capabilities?
-Technical feasibility: Is the project's technology reliable? Is there a practical application scenario? For example, although some projects have excellent short-term performance, they may not be technically feasible.
- Market demand: Is there broad market demand for this cryptocurrency? Can it solve real problems, rather than just hype?
- Community support: An active community can often provide continuous support and development momentum for a project. If a project has weak community support, it may become more vulnerable when the price drops.
3. Fund management and risk control
The strategy of "buy more when the price drops" requires sufficient funds and risk tolerance. Although this strategy seems to be able to gain more assets when the price drops, if the market continues to fall, or the decline lasts too long, it may face serious losses. In order to control risks, fund management is essential.
- Buy in batches: Instead of investing all the money at once, we can buy in batches gradually. This method can avoid investment risks caused by excessive short-term market fluctuations.
- Set a stop loss: Set a clear stop loss point. If the market falls below a certain predetermined price, you can exit in time to avoid further losses.
- Maintain adequate cash flow: Instead of investing all your money in one asset, maintaining a certain amount of cash flow can give you greater flexibility when the market recovers.
4. Patience and time perspective
The volatility of the cryptocurrency world makes it difficult to predict prices in the short term, and returns are often not immediately visible. Investors must have a long-term perspective and patience. Sometimes the market will continue to fall in the short term, or consolidate for a period of time, but in the long run, the fundamentals of certain projects may still drive them upward growth.
For example, old-line crypto assets like $BTC and $ETH may experience drastic fluctuations in certain cycles, but due to the strong support of their technology and market demand (worldwide recognition and institutional holdings), long-term holding may yield good returns.
5. Determining the market bottom
It is not easy to tell whether the market has hit the "bottom". Most investors tend to panic when the market falls, thinking that prices will continue to fall, and thus miss the best buying opportunity. In fact, the market bottom often appears when market sentiment is most pessimistic, and the rebound at this time may be very fast and violent. Therefore, it is very difficult to accurately judge the market bottom, and blindly chasing the bottom may lead to missing other better opportunities.
A common way is to use technical analysis (such as support levels, trend lines, relative strength index, etc.) to find buying opportunities, but these tools are not 100% accurate and are more of a reference.
6. Market Cycles
The cryptocurrency market usually follows certain cycles, usually consisting of bull markets, bear markets, and periods of volatility. Understanding the market cycle can help you better judge whether to "buy more when the market falls."
- Bull Market: The market is in an upward trend, the prices of most projects will perform well, and investors are generally optimistic.
- Bear market: The market is in a long-term downturn, prices are generally falling, and investors are pessimistic. At this time, "buy more when the price drops" may bring long-term benefits, but it also faces greater risks.
- Oscillating period: The market is neither rising nor falling obviously, and the price fluctuation is small. At this time, you need to be more cautious when buying, and you can usually wait for the market to clearly show the trend direction.
Pepe believes that "buy more when the price drops" is a high-risk, high-return strategy in the cryptocurrency world, but it is not suitable for all investors and all market conditions. You need to understand and study the fundamentals of the target assets, manage risks, maintain sufficient patience, and avoid blindly chasing ups and downs. Most importantly, you must have clear investment goals and strategies and be prepared for possible fluctuations.
Keep steady when reversing to pick someone up, the Trump family is trapped!
The market fluctuations have made many people panic, but look at the Trump family’s operation—90% of their funds are heavily invested in Ethereum. Even though they were trapped, they dared to cover their positions yesterday despite the sharp drop! This is not the courage that ordinary players can have.
Why not panic?
1️⃣ The boss will be trapped with you
It is not just ordinary people who are trapped, but also one of the most powerful people in the world. If you are trapped with the Trump family, this is your chance to be on an equal footing with top capital in your lifetime!
2️⃣ Cultivation and concentration
The Trump family bought coins despite the sharp drop, which shows that they are still confident in the future market. At this time, reversing to pick up people and keeping a stable mentality is the highest level of leeks' cultivation.
Summarize:
Being trapped is not scary. With the Trump family by your side, why fear short-term market fluctuations? After a while, the people who open their phones to call orders may be these people who "reverse to cover their positions"!
Finally, let me ask you a question.
Do you think the bulls in the cryptocurrency world are still there? ? ?
