Today, the main market made a counterattack!
A single sentence from Powell caused the Nasdaq index to crash by 3.61%, close to its largest decline in recent years. Moreover, Powell's hawkish remarks don't stop there! He specifically criticized the cryptocurrency space, stating that the Federal Reserve cannot hold Bitcoin. This caused Bitcoin to drop by 5%, which is simply terrible.
This is a hard sell-off! No one can predict what he said; it's like a bolt from the blue. It's not just retail investors; even Wall Street can only stand still and take the hit. The main reason for this crash is that Powell indicated there won't be many interest rate cuts next year, possibly only two cuts, causing various assets to drop. However, Bitcoin's drop is similar to that of the Nasdaq index, with not much additional decline. The moving average indicator shows that the four-hour chart has fallen to a dense support range. The only way to break below it would be a real black swan event; otherwise, all declines are just paper tigers!
Personally, I feel that the 'crash' of the cryptocurrency market is driven down by contracts.
Because I looked at the contract market yesterday, the liquidation heatmap shows that the long positions are three times that of the short positions. In the last 24 hours, 270,525 people worldwide were liquidated, with a total liquidation amount reaching $781.49 million.
In every bull run of Bitcoin, a pullback of more than 30% is very common. Leveraging 3x or more needs to be washed regularly. Otherwise, why should they earn twice as much just because the spot price doubled? Now this so-called 'crash' and 'bloodbath', even counting from 100.8k to 98.8k, is just a -9% decline, not even 10%. It's too gentle.
The altcoin market has suffered serious losses, and altcoins have basically dropped to the bottom. However, there is hope that the main market and altcoins will rise together later. Previously mentioned in the article, it seems that the altcoin season of 2021 was relatively strong, while this round of altcoin season is taking three steps forward and two steps back.
The opportunity to escape from altcoins and the opportunity to get on board are actually two sides of the same coin. The key lies in whether you are trading based on emotions or managing risk at the core. As for the 'last chance to escape', it's just a hot topic.
I have always said not to go all in; leave some USDT! (Including what I have been saying: if you like to play long-term, you should at least have three layers of BTC in your hands.) Investment is about position size, algorithms, and strategies! You really need to analyze more; spot trading is inherently cyclical, and the mindset for spot and contracts is completely different. Spot trading is very stable while layered contracts are prone to liquidation!
Even in a bull market, there will be many pullbacks. We just need to endure this wave of pullback and wait for the good times to come. The bull market is not over yet; we can still buy a little on small dips and buy more on larger dips!
1.PNUT:
The squirrel had already hinted that the first reason is that the rise is not as expected, and the second is that the vehicle is too heavy and needs adjustment. It has currently fallen below $1, and the range of 0.5-0.7 can be used for some buying on dips.
2.JTO:
Just buy in batches below 3.3; this coin adjusts quickly and will rebound quickly when the time comes.
3.RSR:
Currently, it is undergoing a second pullback, having fallen below 0.012. Below 0.012, you can look for positions to buy on dips in batches. This wave of RSR adjustment is quite violent, and after the adjustment ends, a good upward trend is expected.
4.DOGE:
As long as it can maintain a high oscillation above 0.33, there won't be too much trouble. However, if it falls below 0.33, we might see the dogecoin at 0.27, which will then be an excellent opportunity to buy on dips. Overall, I am optimistic about dogecoin; just buy low and hold on!
5.SOL:
Today, there is a buying opportunity at 200 for SOL. Keep some positions to see if there will be opportunities to buy below 200. As long as SOL dares to drop, just buy boldly; there's no need to be afraid!
