Good evening guys!!
Bitcoin plunged rapidly after five in the morning this morning, and hit a low of $58,000 at 06:15 earlier, hitting its lowest point in nearly ten days. Ethereum also fell below $2,400 at one point. In the past 24 hours, the entire network had a liquidation of $316 million.
The price of Bitcoin continued to fluctuate downward yesterday and plunged rapidly after five in the morning today (28). Earlier at 06:15, it hit $58,000, the lowest in nearly ten days.
At the time of writing, it seems to be preparing for a second bottom, temporarily reported at $59,090, down 6.32% in the past 24 hours.
BTC price trend. Source: OUYi
Ethereum once lost $2,400
Ethereum's trend is similar to that of Bitcoin. It fell to a low of $2,391 after 6 a.m. and is currently trading at $2,441 at the time of writing, down 9.09% in the past 24 hours.
ETH price trend. Source: ETH
In the past 24 hours, the entire network has liquidated $316 million
As Bitcoin fluctuates sharply, according to Coinglass data, in the past 24 hours, the total amount of cryptocurrency liquidations exceeded US$316 million (long positions accounted for US$280 million), and more than 86,000 people were liquidated.
Top 10 Token Performance
CoinMarkeCap data shows that most of the other top ten tokens have also fallen in the past 24 hours: SOL has the largest drop, down 7.63% in the past 24 hours, while XRP and DOGE have also fallen by 4.49% and 6.87% respectively.
The only one that went against the trend was TON, which was recently affected by the arrest of the founder of Telegram and rose 2.04% in the past 24 hours.
Therefore, as uncertainties increase, current market sentiment is affected by large-scale selling and potential further selling pressure, and Ethereum may continue to face downward pressure in the short term.
What is the reason for the decline?
There is no need to find a reason for the decline. If you must find one, it is ARKB. The fund has the largest net outflow in history.
At present, the capital flows of the 12 US Bitcoin spot ETFs on the 27th have not yet been fully released, but it is worth noting that ARK & 21Shares' ARKB outflow exceeded US$100 million, setting a record for the largest outflow in the fund's history.
In contrast, GBTC, which used to be the largest source of outflow, only had an outflow of $18 million on the 27th. It is still unknown why ARKB has seen a large amount of capital movement, but BTC has plunged sharply without any particularly bad news, and there may be some unknown operations behind it. The outflow of ETFs is one of the reasons for the market panic.
Awaiting Nvidia's earnings report, the Dow Jones hits a new all-time high
Investors are currently waiting for the release of NVIDIA's financial report. Investor sentiment is cautious, but the four major U.S. stock indexes still rose on Tuesday (27):
The S&P 500 rose 0.15% to 5,625.80
The Nasdaq rose 0.16% to 17,754.82
The Dow Jones Industrial Average rose 0.02% to close at 41,250.50, setting a new record high.
The Philadelphia Semiconductor Index rose 1.10% to 5,153.63 points
When we published the article yesterday, we analyzed that the 4-hour level is in a downward trend, and the 12-hour decline has just begun, so continued decline is inevitable. As for where the decline will stop, we can only wait and see, but we can say for sure that the diamond bottom is around 42,000. If you see it there, you can buy it without thinking.
Found an interesting thing:
Although the technical indicators have been bearish in the past two days, the two big declines both started after the U.S. stock market closed, which means it was the Americans themselves who crashed the market. Why did they choose to crash the market after the U.S. stock market closed? This smells a bit like conspiracy.
The only reasonable explanation is that the market was dumped maliciously to burst the long positions and get some people off the car. Only when the car is lighter can it run faster and more steadily.
Is there a banker behind Bitcoin?
Of course there are, and now the popularity of dog dealers is getting worse and worse.
The question is, who is Gouzhuang?
He is not a person or an institution, but institutions with common interests.
Including but not limited to: exchanges, investment institutions, asset management companies, market makers, etc.
The pockets of the leeks are their target. The short-term rise and fall of Bitcoin has nothing to do with the news. The news is just a way for everyone to comfort themselves: Oh, so this is the reason
The main reason that affects the short-term rise and fall of $BTC is that the derivatives market (futures options contracts, etc.) has greater profits. Wherever there is greater profit, the dog dealers will go in the opposite direction.
When there is no liquidity in the market, it is very easy to manipulate. Perhaps an institution, a market maker, or an exchange, a little bit of capital can manipulate the entire market. This behavior cannot be explained by any technical or news aspects.
If you make money, you must run away, otherwise the situation will fall. Anyway, pay attention to safety. In this wave, except for BTC, it only obtained liquidity around 65,000, and the others did not exceed the high point of the natural rebound.
Let me tell you about my “rebound judgment”!
When the market seems to be stable, first check whether the core MEME is jumping. If not, don’t get on board!
I don’t know what algorithms the market makers of several core MEMEs use, but they are always accurate! Only when they and BTC both rebound, it is a rebound! If only BTC rebounds a little bit, and the core MEME basically lies still, then don’t get on board! You will be trapped if you go up
The Meme coin project quickly attracted a large number of users and trading volume in a short period of time, and Binance could hardly ignore this market trend.
The current copycat spot market cannot tolerate the situation, you can only take advantage of the short term and leave!
ETH fluctuates frequently, and the altcoins also fluctuate greatly. Except for medium and long-term positions, others are mainly in waves!
As for other altcoins, they have basically followed the market downward, especially the projects that have recently listed contracts on Binance, such as $voxel $rare, which have fallen by about 20%.
Another one is the Ton ecological project, which has been performing poorly in recent days.
$not $ton $redo have all seen a significant pullback, but there is news that Telegram founder Pavel Durov may be released soon. Some say it will be within 96 hours starting from Sunday. If Pavel Durov is really released, then the entire ton ecosystem will definitely explode. However, the probability of Pavel being released in August on Polymarket is only 35%.
Meme Tugou Section
Although the popularity is not as high as before, it is still the main battlefield for retail investors to compete in the cryptocurrency circle. Several memes that went viral in the last wave have also come out recently, such as $fwog, which has increased by 7 times in the past three days, and the average daily transaction volume on the chain exceeds 10m. Looking at this trend, it seems that the market has been cleaned up and is ready to rush to the big exchanges. The current fdv is 72m. If there is no news from the big exchanges later, the market value is still quite large.
Cut losses or buy at the bottom?
This round of decline is the profit-taking of bottom-fishing. In addition, the selling pressure in Mentougou continues to increase, and selling continues. If less funds flow in one day, the selling pressure will be revealed.
If there is no other negative news, BTC should be able to stay around $58,000-$59,000. It has been trading sideways near this price for half a month and has strong support. Be patient and hold the currency. Don't sell at the bottom. It will take some time to wear out the selling pressure from Mentougou, which will take at least half a month and may last until mid-September. The PCE data will be released on Friday. If it is positive, there should be a small rebound.
What should we do in the current market situation?
Bitcoin plunged this morning. There were rumors that 30,000 bitcoins were transferred to Binance yesterday. The transfer took place around 17:30 yesterday afternoon. If the panic started yesterday, later analysis suggested that it was an internal transfer within Binance.
As the market has not yet fully stabilized, there are still many macro concerns. For example, the situation in the Middle East has changed again in the past two days, Nvidia's earnings expectations tonight, and concerns about interest rate hikes in Japan, etc.
I thought the 4-hour level trend was coming out, but today's sharp drop directly smashed all the previous gains and returned to the volatile market.
Although it is difficult to predict in the short term, the overall market outlook for Q4 has not changed.
Summarize:
Set goals for yourself ahead of time, and strictly follow your strategy regardless of external factors. Set goals, stick to the rules, and execute them!
The market is currently full of major players harvesting back and forth, which is very unhealthy. The best strategy for this market is not to buy at the bottom or to sell at the top, but to wait and see. Since the Bitcoin ETF was passed, it has been a beast market. Wall Street has opened a big casino. If you bet on long, he will open short, and if you bet on short, he will open long. The casino always makes money.
What you can do next is to participate in the opportunities of short selling and new listings without losing your capital, and you must keep yourself in cash flow. Only when the cash flow is sufficient can a person maintain a clear state of thinking and decision-making. There are still 3 days left in August, and the coming September will attract much attention from the market because there are several major events in September.
Someone asked me a few days ago how to trade and buy and sell. My method is very simple:
Mainstream assets are traded based on cycles, and short-term fluctuations have no effect on me. As for copycat assets, you can be more casual and base your trading on the increase. For example, if you want to double your investment, you will definitely have to pay out your capital. It’s not a too greedy strategy, and if you stick to it, you will find it is very effective.
What we can do now is to control our positions, buy high-quality assets such as Bitcoin on dips, and then wait for prices to rise.
This is the end of this article for now; if you want to know more about exciting events in the circle, you can join the community for consultation!
