"Christmas robbery"! 300,000 people were almost forced to close their accounts! It's really horrible!
The day before yesterday, I reminded everyone that the market might correct. As a result, Bitcoin really plummeted, and almost 300,000 people were forced to close their positions. It was really horrible!
There are two main reasons for this plunge: first, the Federal Reserve’s plan to cut interest rates next year is not so aggressive, which has affected the U.S. stock market and naturally led to a decline in Bitcoin; second, Chairman Powell said that they will not buy Bitcoin or amend the law, which is a bit of a blow to market confidence.
However, I personally think that these two problems should only be short-term and the market will digest them after a while.
Currently, Bitcoin has dropped to around 97,000. Everyone shouldn't panic too much; after all, this drop is more news-driven, and it may fluctuate around 100,000 in the short term. If you think the price is good, consider buying some spot in batches. Buying around 80,000 is also fine, but remember not to touch contracts; the risk is too high!
BNB also fell but rebounded quite quickly; it may fluctuate around 700 in the short term. If you trade spot grid quant, you should be able to make a little money.
As for Ethereum (ETH), it's in a worse situation, dropping more than Bitcoin, with weak rebound strength and declining funding rates. If it continues to drop, it may remain weak.
As for Dogecoin (DOGE), everyone knows that as long as Musk doesn't say anything, it's just a decoration. But when will Old Ma speak? No one can say for sure.
Overall, I think after this adjustment, Bitcoin will still fluctuate at high levels; the bull market is not over yet. However, there might still be some risks in the coming days, and the real opportunities should come in mid to late January. So for now, it's safer to buy some spot; definitely don't touch contracts; it's too scary!
Regarding today’s BTC market analysis: From the candlestick chart, the 1-hour, 4-hour, 12-hour, and daily charts are all in decline, with short-term resistance at 99,000 and support at 94,000. Pay special attention to 95,000 as a key level!
Continuous drops? It's actually a great opportunity to buy the dip! How to accurately lay out positions during low prices in the crypto circle and make a fortune!
The steeper the market falls, the greater the opportunity: This is actually about seizing a rebound opportunity. When the market is in decline, appropriately buying more assets is like entering at a low price, waiting for future price rebounds. The underlying thought is simple—if you believe in the long-term value of a certain crypto asset, buying when prices fall can actually achieve the goal of 'buying low and selling high.'
However, this strategy is not without risks. In fact, it is full of potential but requires cautious execution. To lay out positions accurately, in addition to having a deep understanding of the asset itself, you also need to consider the overall market trend, fundamental changes, and technical support. Through reasonable risk control and strategy adjustments, you can maximize the chances of seizing rebound opportunities.
If you don't buy during a bull market drop, when will you buy? When the price is at the peak, and FOMO sentiment is high?
But you mustn't be 'killed by flattery, cut off for nothing.'
ORDI is trending, and people are starting to speculate on SATS, saying they want to seize the top position;
GOAT is trending, and the East has started focusing on ACT, while the West has released FARTCOIN;
VIRTUAL is trending, and various AI-related projects are popping up again.
As a result, retail investors ended up exhausted from chasing, leaving only a pile of rags.
PVP games have become conspiratorial on a large scale. If you want to operate simply, you can only focus on those top-notch, insightful people and projects.
Backing up to pick someone up steadily, even the Trump family is stuck!
Market volatility has made many people anxious, but look at the Trump family's actions—they have 90% of their funds heavily invested in Ethereum. Even though they are stuck, they still continued to average down despite the significant drop yesterday! This is not something ordinary investors dare to do.
So why aren't they anxious?
1️⃣ Big players are also stuck.
Not just ordinary people are stuck; one of the most powerful people in the world is too. Being stuck alongside the Trump family is an opportunity to stand on the same side as top investors!
2️⃣ Determination and patience.
The Trump family continues to buy during the major drop, indicating their confidence in the future market. Maintaining calm and steady mindset is the highest quality of an investor.
To sum up: Being stuck is not a big deal. With the Trump family beside you, what do short-term market fluctuations even mean? After some time, those top investors who are 'averaging down' may become the leaders in the market!
However, I have organized some strategies for averaging down, hoping to help everyone:
Step 1: Adjust your strategy based on your holdings.
For friends with slight losses: If your loss isn't significant, you can take the opportunity to average down or reduce your position on the rebound to retrieve funds and lower risks.
For friends deeply stuck: If you are deeply stuck, you might consider adding to your position during a rebound or averaging down. This way, when the market recovers, you'll have a psychological advantage.
Step 2: Decide actions based on the coin's trend.
1. If the coin you bought is in a downtrend: Once the trend is confirmed, it's best to cut losses decisively. Don't harbor illusions; sometimes a moment's hesitation can lead to bigger losses, and you might end up stuck.
2. If the coin you bought is in a consolidation phase: There’s no rush to cut losses; you can patiently wait for the price to rebound to a high point before considering exiting. Be patient and wait for either a recovery or a minimal loss before making decisions.
3. If the coin you bought is in an uptrend: Then there's no need to cut losses; just hold on. The market may provide you with a good opportunity, and ultimately, you may even have a larger profit margin when you exit.
Just a reminder: Christmas is around the corner, the 2024 fiscal year is ending soon, and with Trump about to take office, the capital market has already 'priced in' early. This period is usually relatively stable, so everyone shouldn't be too anxious.
According to Arthur Hayes' prediction, the crypto market may experience a significant drop around January 20, 2025, just before Trump's inauguration, followed by a great buying opportunity.
In the coming months, Bitcoin may fluctuate between 80,000 and 110,000, just like it fluctuated between 50,000 and 70,000 after March. Until a new event (like a black swan or major liquidity injection) changes this trend.
As for altcoins, they are still in a bear market, and the recent rebound is just a short-term recovery. Due to the lack of strong ecosystem support and new funding injection, the fundamental situation of continuous unlocks for cashing out by VCs hasn't changed, plus major platforms are launching new coins to siphon off liquidity, altcoins still struggle to show a clear upward trend.
Lastly, let me share a few important news items:
1. Federal Reserve Chairman Powell stated that the Fed is not allowed to hold Bitcoin and has no plans to seek a change in relevant laws. This means the Fed's attitude towards Bitcoin remains cautious, and it will not participate in the crypto market for now.
2. South Korea's Deputy Prime Minister Choi announced that the South Korean government holds a positive attitude towards cryptocurrencies, has decided to postpone the implementation of the crypto tax, and is formulating new regulatory policies focusing on customer protection and the legal nature of cryptocurrencies. This is good news for South Korea's crypto market and may bring more policy support.
3. MicroStrategy co-founder Michael Saylor stated that the company will focus more on fixed-income securities to raise funds for purchasing cryptocurrencies. This shows that MicroStrategy remains bullish on Bitcoin and continues to increase its holdings.
4. BlackRock pointed out that in the context of rising inflation, government bonds are no longer effective hedging tools, and investors should consider gold and Bitcoin as new diversification options. This viewpoint from BlackRock indicates that Bitcoin is gradually becoming a tool to combat inflation and market volatility as part of an asset portfolio.