Warning ⚠️, an epic correction will occur this weekend 😐
The current market trend is still in a sideways consolidation state. 🧐 Let's take Bitcoin as an example; it has encountered significant resistance during its upward movement, like hitting a wall, making it difficult to continue rising. 😣 From the performance of the fear and greed index, we can observe that there is a considerable possibility of a pullback in the short term, which means the risk of short-term adjustments is continuously increasing. 😱
The theoretical basis for a major correction:
1. The fear and greed index rises above 90 again.
2. Liquidity approaches a critical point of exhaustion, indicating that most people are already in the market.
3. The contract funding rate remains at 0.03.
4. It is the fortieth day since the daily level rebound began.
As long as any one of these conditions is met, historically, a major correction could occur in the near future, not to mention that all four points are currently satisfied.
However, we cannot only focus on the negative side. The bullish sentiment is still very strong right now, with some institutions, such as MicroStrategy, continuously increasing their Bitcoin holdings regardless of whether the price goes up or down; they only have one action—buying, with no intention of selling. This behavior acts like a booster shot for the market, making everyone feel there is still hope. 👏
From an overall perspective, the probability of a major bull market starting has exceeded 90%. 😎 Everyone should know that we are now approaching the last month of 2024, and at this critical moment, we need to be fully prepared for the potential correction; this is very important. 🤔 Of course, we should not only focus on the correction but also look for any breakthrough opportunities that may arise afterward; once they appear, it could be a great time to make a profit.
