The market was slaughtered in the early morning of today, and the altcoins were even more terrible. Looking at the liquidation data of the entire network, the 24-hour liquidation amount was 2.3 billion US dollars, and a total of 150,000 people were liquidated. From the liquidation data, it can be seen that this wave of altcoin liquidations accounted for a large proportion, which also reflects the recent high greed sentiment.
The bull market was followed by a sharp fall. A foreign netizen’s 3x leverage was liquidated overnight, resulting in a loss of 1 million U.S. dollars. He has been involved in the field of cryptocurrency since 2017, which is nearly 8 years ago.
This is how the financial market works. It’s not about who has more experience or skills; the key is how long you can survive. You must always have awe of the market.
The main reason for the sharp drop in the altcoin market this time is that it has risen too much and needs to be properly squeezed out. The most intuitive point is that when observing the new tokens listed on Binance during this period, it is found that most of them open high and close low, sucking blood seriously, and the circulating market value is hundreds of millions or even billions once listed.
As Bitcoin has not yet broken through new highs, the liquidity of the market has continued to weaken, which is why the decline this time is so smooth. Be especially wary of those king-level projects with a total valuation of 10/20 billion US dollars. If you buy them heavily, you may be trapped for an entire bull market.
A drop is an opportunity. Often a copycat stock can increase 10-20 times because of panic trading, which cleans up the chips and allows the stock to rise smoothly.
When it comes to bottom fishing, I still hold my previous view that the underlying public chain is the first choice. In the public chain sector, the larger the supply of token chips, the better. Let’s briefly talk about some short-term altcoin opportunities.
BNB: With the support of Binance's new IPO mining, it is a relatively resistant token. You can buy it on dips. If you continue to use BNB to participate in new IPO activities, there will be no problem in outperforming BTC in a bull market.
SOL: Although the sentiment around the Solana chain deteriorated slightly in the short term due to network congestion issues last week, I don’t think this will have any medium- to long-term impact. Solana is still the world’s largest casino and has the ability to continue to maintain its dominance.
DOGE: It has been performing well recently. Musk is expected to tweet soon. If there is an opportunity to enter, it may be a good trade.
ORDI: With the halving just days away, the inscription narrative seems surprisingly quiet. I remain bullish on BRC-20’s performance heading into the halving, with ORDI being the inscription leader.
STX: Leveraged BTC in a bull market.
TIA: After a continuous decline, as a leading modular narrative project, it is a good bargain-hunting target.
SSV: As a Restake middleware, it has a low market value and great potential. I believe the staking narrative will come soon.
Generally speaking, there will be a rebound after a sharp drop, but in a bull market, the market will recover quickly after a sharp drop, and you will not have much time to buy at the bottom, so we can observe for two days first, and it will not be too late to enter after the market stabilizes.
Finally, let me share a little story: If the story of the tortoise and the hare is applied to the financial market, 99.99% of people in the world will bet on the hare and not the tortoise. However, the outcome is often unexpected, and the tortoise, the least favored one, becomes the winner in the end.
Remember, if you view your position as a long-term investment, a market drop should be viewed as a gift. It provides an opportunity to buy more tokens.
Finally, it is crucial to have a strategy before making any purchases, and never invest all of your money.
I hope this topic is helpful to you. 🙏Thank you for your likes and support👍