Today, Bitcoin encountered a flash crash, dropping to a low of $92,600, followed by a slight rebound. This volatility was primarily caused by long liquidations and profit-taking from long-term holders, and the shift in market sentiment makes it critical whether dip buyers can enter the market in time.
The goal of $100,000 has collapsed, and sellers dominate the market.
Bitcoin once approached $100,000, but the bulls lost power, and sellers gradually took control, leading to drastic price fluctuations and a drop to $93,000, triggering large-scale liquidations across the network.
According to Coinglass data, the liquidation amount in the past 24 hours has reached as high as $551 million, with $414 million from long liquidations and $137 million from shorts, involving 169,786 traders, with the largest single liquidation amount being $4.67 million, occurring on Binance's BTC/USDT perpetual contract.
Liquidation-induced selling exacerbates market downward pressure. As a large number of liquidation orders flood in, market liquidity fluctuates sharply, especially in centralized exchanges (CEX) providing perpetual futures trading, where the trading volume of BTC/USD and BTC/USDT surged, temporarily leading to market chaos.
In addition to the forced liquidations from longs, long-term holders (LTH) have also become a source of selling pressure. According to Glassnode data, the LTH group from the past 6 to 12 months is the main seller, having accumulated a large position at Bitcoin's historical lows and choosing to take profits during the current price fluctuations. The selling actions of LTH reflect changes in market sentiment, especially as Bitcoin approaches highs, investors begin to cash in on some profits. Selling pressure comes not only from leveraged liquidation but also from long-term accumulated profit-taking.
From bullish spot to leveraged shorts: The subtle shift in the market
With the market's volatility, the delicate balance between buyers and sellers in the financial market has changed. Today's market trend indicates that the preference for funds has gradually shifted from short-term spot trading and leveraged longs to the bearish camp.
As liquidations intensified, short positions surged, and financing rates rose from 0.019% to a peak of 0.04%, indicating an increased market expectation of a decline in Bitcoin prices.
Bitcoin price approaches $90,000, liquidation pressure resurfaces
According to liquidation chart data, the current Bitcoin price has fallen below the key support level of $94,000, triggering a wave of forced selling. Some traders express strong interest in the $90,000 level, believing it could become a new buying support zone. If Bitcoin's price further dips to $90,000, the market may face a new round of price fluctuations.
Can dip buyers enter the market in time?
Despite the market being in a state of frustration for the bulls, many traders and investors still have a positive outlook on Bitcoin's long-term prospects. Whether the funds that buy on dips can enter the market in time will determine the market trend going forward. If the funds that are absorbing at low prices begin to pour in, it may alleviate the current selling pressure to some extent and support a rebound in Bitcoin prices.
In summary, today's Bitcoin flash crash is the result of multiple overlapping factors, including short-term pressure from liquidations and profit-taking from long-term holders. Although market sentiment may continue to fluctuate in the short term, Bitcoin, as an asset, remains a focus for global investors, and long-term growth potential still exists.
The specific situation of today's market has been explained, now let's talk about how the altcoins are doing at the moment???
The current market is a typical sector rotation market, with strong coins taking turns to perform; capturing hotspots is like catching a money-making machine. A simple approach is to adopt a Belt and Road mindset:
On October 4th, during the Dogecoin surge, multiple opportunities to grasp mask were seized;
On October 9th, the oracle sector leader LINK had five consecutive days of gains, increasing over 35%, while TRB consolidated at the bottom, doubling the next day;
On October 5th, I bottomed NEAR at 3.7, and it has already doubled;
In the meme sector, floki has also doubled;
Ripple has long encouraged everyone to buy at 5 and go all in at 4, achieving a twofold market performance.
Recently, the gaming, DeFi, and NFT sectors have been active, with gaming leader AXS doubling in a week, DeFi leader UNI rising nearly 50%, and the NFT sector BLUR also increasing by nearly 50%.
For the new coins NEIRO, PNUT, and ACT, I believe there is great potential for them to become the main driving force in this bull market. Here are my several judgments:
Market performance: On-chain assets perform well in both bear and bull markets. From March to October 2024, Bitcoin fluctuated, secondary altcoins were sluggish, but on-chain assets remained active. Sectors that perform well in bull markets often do well in bear markets as well.
The essence of the crypto space: The crypto space is a 24-hour operating 'big casino', where the most appealing aspect is 'turning luck around, a coin changing fate'. In this environment, new on-chain assets have the most imaginative potential.
Funding choices: New, low-market-cap, high-enthusiasm 'new on-chain assets' are the first choice for funds. Whether for large or small funds, they tend to prefer these new assets when entering the crypto space rather than existing old coins.
Listing on Binance spot: New on-chain assets listed on Binance spot means they can accommodate large funds, further proving their potential.
The key to a bull market lies not in precise operations but in choices. Many people lose money in a bull market due to blindly chasing prices. We should remain calm, do subtraction, focus most of our energy on the main line, and dedicate a small portion of our energy to side operations. If we are wrong, we can still gain the overall market's BETA returns; if we are right, we can seize the opportunity of the bull market.
That's all for today's article. Currently in a bull market, with winds and clouds stirring, we share codes every day. If you're unsure about how to navigate a bull market, feel free to follow us; we can share spot codes and layout strategies for free.
