Is this wave in place? All altcoins above 3X are dead, the fee rate has returned to the standard value, and the bulls have heavily liquidated!!!
On December 6th, that wave in the early morning, the drop from 100k to 90k for Bitcoin was quite in place, with all liquidated under more than 10 times leverage.
On December 10th, around five in the morning, this wave, all 3X altcoins were cleared out.
I reviewed several data points, on that day Moodgen, the amplitude was 50%, other similar market cap drops had similar amplitudes, which means with 2X leverage, it was all liquidated.
WIF had a daily amplitude of about 35%, with a market cap of 4 billion, this part of the market cap range, with 3X leverage, was cleared out.
Such flash crashes should not be heavily bought; we need to be alert that a rebound might not happen, leading to a downward wave. The principle is not to take such 'flying knife' orders. Otherwise, it could very likely turn into a crematorium!
Altcoins need to differentiate, pay attention to low-level replenishment and strong funds borrowing mainstream to wash up and create a V rebound!
The funding rate has returned to normal, and bull markets often experience more crashes, which is why losing money in bull markets is often more than in bear markets!
When contracts lose, the principal is gone; when spot loses, at least the coins are still there!
Essence: Tolerance Rate + Odds
The lower the leverage, the higher your tolerance rate, and the larger the safety margin, meaning the probability of losing your principal in the market is smaller.
Odds refer to the probability of making money; if you are unclear about the odds of the order you are placing, as well as the daily and weekly trends, then do not touch contracts.
Contracts are tools (hedging, arbitrage) and should be used according to the tolerance rate + odds formula, not for gambling! Remember!
Today I reviewed and optimized my strategy, currently, the tolerance rate is widening, and the odds are getting higher.
Continuous iteration is still needed! Every time there is a liquidation, you must understand where you lost; otherwise, after a hundred liquidations, you are still standing still!
If you are stuck in spot trading, you can only use contracts to cover some losses, but believe that the bull is still there; it’s just a temporary pullback. Last night, I made a small short on Ethereum and made 200 points.
Focus on altcoins: pnut, doge, pepe, neiro.
The upcoming layout direction, Dapiao will still lead everyone to aim for the huge profit opportunities in altcoins. The targets that were ambushed last month, at least five have doubled and have already taken profits and exited.
For friends with choice phobia, if you don’t know how to choose, comment 111 to follow along.
Dapiao has selected several high-quality coins for everyone in the fan group; holding them for a long time will definitely yield a lot!!! 🚀
