⚠️Bitcoin's greed panic has reached its April high, or will it face another round of correction?
The current Bitcoin cryptocurrency market is in a state of extreme greed, and mainstream media have reported that the price of Bitcoin is close to $90,000, and the risk has increased accordingly.
Before the price of Bitcoin hits the $100,000 mark, the market may need to clear high-leverage trading positions first to pave the way for a larger price increase.
According to the market sentiment indicator, the greed index has reached 84. The last time the index exceeded 84 was on April 9 this year. Subsequently, Bitcoin experienced a correction of about 25%, from $71,000 to $54,000. The current greed index has hit 84 again, and the market may face a similar correction risk.
However, any correction can be seen as an opportunity to get back on board, and investors should seize the opportunity. In addition, in order to reach the goal of $100,000, the Bitcoin market needs to clear high-leverage positions. Therefore, it is recommended not to use money you can't afford to lose to make high-leverage contracts.
In addition, from the data of the past few days, we can see that in just one day yesterday, 577 million US dollars of long orders and 292 million US dollars of short orders were liquidated, mainly long orders. In the previous two days, 580 million US dollars and 680 million US dollars of leveraged positions were liquidated, mainly short orders. That is to say, in just a few days, more than 2 billion US dollars of leveraged positions have been cleared out of the market. At the same time, the more crazy the market is, the higher the risk factor of your leveraged positions will be.
Investors are reminded that even in a bull market, holding high-quality cryptocurrency spot can also get good returns. But if you must leverage, it means that you will also face huge risks, and the amount of investment should be limited to the range of losses you can bear.
However, in the early stage of this frenzy of the bull market, I would like to emphasize that if investors hold high-quality investment targets, it is entirely possible to achieve significant growth in assets in this market cycle, or even double or multiply the value.
💬 What do you think of the greed index of the current Bitcoin market? Do you think the market will experience a correction? How do you manage your portfolio in such a volatile market?
