What did you see in the market during last Friday's rebound?
Is it fear? No, it's absolute greed;
When the market drops, many people will try to catch the bottom, which obviously does not meet expectations; the real stage bottom is accompanied by panic selling, so it's clear that we are not at that point yet;
In the crypto circle, since we are here, we can't just rely on words; you have to take action!
In the past 24 hours, a total of 105,678 traders have been liquidated across the network, with a total liquidation amount reaching $288.76 million.
Recently, long positions have almost been liquidated; even if Bitcoin drops to 85,000, it can only explode $1.17 billion; conversely, if Bitcoin rises to 105,000, it could explode $2.4 billion in short positions.
After extreme negativity comes positivity; a sharp drop will surely have a rebound, in the short term, pay attention to the previous low of 92,000 for a second test. As long as it does not break below, there will definitely be a rebound.
A single picture, different people see different results; some see the top and risks; while I see the same level and the vast sea of stars; we might be wrong or right, but that doesn't matter, what matters is getting in, placing bets, and validating judgments with positions;
Bitcoin's recent pullback started at 108,353, which seems to be a normal adjustment to the blue upward wave. From a larger perspective, Bitcoin's movement remains strong, with limited declines, which is the root of market panic: Bitcoin has hardly dropped, but altcoins have significantly retreated. If Bitcoin really declines, those altcoins will be in trouble.
The overall volatility pattern has not changed; if the previous low cannot hold, then 89,600 will become a key support level. After all, the market never only rises without falling, nor does it only fall without rising. Therefore, I believe now is not an ideal time to short. Just like a friend of mine who has been shorting at the 100,000 mark, the result has been disastrous, and I really don't know if he made any profits in this drop.
At this position, the cost-effectiveness of shorting is not high; take a careful look at the chart, the previous low is the support. If the support fails, we may have to look for opportunities at 89,600. Staying calm and investing rationally is the wise choice!
Altcoins, I mean all of them, I think they are all oversold compared to Bitcoin! Yes, this is my clear opinion!
Including ETH, SOL and other major cryptocurrencies, they are all oversold compared to Bitcoin!
I can't imagine what would happen if a similar level of increase occurs; the market would be so hot, it's exhilarating!
I firmly believe that the bullish trend is still there, and the major upward wave has not yet begun; we can compare it with past K-line movements:
(1) The market officially started in September 2020, you can look at the chart!
(2) The first round of the major trend after the bear market in September 2023 is back, as shown in the picture!
(3) This round of the market also bottomed out in September, let's look at the lines!
To summarize, the various coincidences that have appeared in the market recently really make one wonder, is this just simple mimicry? History always has traces to follow, I believe the scale of this adjustment has nearly bottomed out, and I expect that in about 10 days, the market will continue to fluctuate and build a base, followed by a wave of major upward momentum.
However, it is worth noting that in recent years, the market usually experiences some downward trends before and after Christmas. So what will happen this time? I believe the possibility of a big drop is low, and the recent fluctuating market will be the main theme. Investors at this stage may as well pay more attention to market changes and look for suitable buying opportunities.
So the recent strategy is:
Once the market drops, the opportunity for scavengers arises! I observed yesterday that although the market had fluctuations, there were no obvious liquidation orders. I am looking forward to the arrival of a new round of declines, ready to take action during the rebound to easily earn profits.
From my experience, the premium on USDT is usually a good signal. When there are no major negative news, if Bitcoin drops 20%, it almost always rebounds by 10% the next day. When major coins drop even more, they usually rebound 10% to 20% the next day. This is my little insight.
So, how to catch the bottom? First, the background and strength of the project party are crucial; the stronger the project party, the more worthy of attention; secondly, whether the project party is accumulating a large amount at the bottom is also key. As long as these two conditions are met, the probability of subsequent rises is almost 99%!
In short, the opportunities brought by market fluctuations should not be missed; mastering these little tricks will allow you to turn the tables even in a bear market!