Hi binancians! It's been a few days since dad's sudden collapse $BTC and I've had time to reflect on it.
Have you ever wondered why you fell so suddenly or are you still recovering from the blow?
Have you won or have you learned?
I hope you answered yes to one of those two questions, because if not, you're in for a turbulent future in this market. But hey, if you haven't learned anything, then keep reading and maybe you'll take something positive away from your backpack.
In my humble opinion, it has been a conjunction of several negative factors that have globally set off a FUD bomb.
The most notable factors are:
- Rumours of war in Iran. I don't want to dwell on this point too much. I don't understand wars. I hope they can settle the conflict in a way that will cause the least suffering for civilians.
- Suddenly, a rumor spread that the US market was going into recession. Curious because days before, our "dear" FED president came out and announced that the economy was on track... although he did not say the long-awaited phrase: "I will lower rates in September." Bleh! Bad business.
The same protagonist released the employment figures a few days later and they were not as expected, not dramatically bad, but worse than expected.
- Added to the above rumor was the news that Warren Buffet had sold his Apple shares to obtain liquidity. This immediately alerted all markets.
When this guy talks, he makes the price of bread go up. Only he knows for sure the reasons that led him to make such a move, but the market, as always, positioned itself in the worst possible situation and assumed that he wanted liquidity to buy a dip.
- On the other hand, the $BTC charts showed weakness, printing progressively lower highs and lows. Charts that ended up drawing a clear bearish pattern in the shape of a Head and Shoulders. In addition to this, there was a huge amount of long positions with a large leverage, the BTC was drowning due to lack of liquidity.
- As if all this were not enough, the Land of the Rising Sun gave us another clear warning message. They raised interest rates by 0.25 points... Really?!?!? They have not raised rates since 1995 and just now... This unfortunately is a bad message for the markets. The Japanese had been borrowing money at a cost of 0 and were investing it in other more profitable markets. So the market assumed that with the rise in rates, the risky investments of the Japanese would be reduced. Is this true? We will soon find out...
Anyway, friends. Another day I'll tell you how to take advantage of such a disaster. I hope the bomb didn't catch you with your pants down and I'm very glad that the market has shown great strength. Without a doubt, hopeful messages like the one from @Richard Teng calling for sanity helped in the recovery. I just hope that we continue with such a positive trend and soon we see BTC reach the moon and beyond!
A hug
