11.24 Will the market experience a flash crash again?

Due to yesterday's flash crash of WBTC, which plummeted from 100,000 USDT to 5,000 USDT, many friends are particularly concerned whether Ethereum and other altcoins will experience a similar situation.

Firstly, WBTC corresponds to a 1:1 ratio with Bitcoin, exchanging equal value. The specific reason for the flash crash is not particularly clear, but it is evident that "leveraged trading" is affected.

Currently, the market's greed index is still above 90, and retail investors' greed index for Ethereum is an astonishing 97, just 3 points away from the explosive index of 100. The long positions are also over 90%, which is very high and cannot be easily washed out.

Many new investors in the market have not experienced an 80% drop in altcoins or Bitcoin; their concept of market decline is just 20% or 30%. Yesterday's flash crash of WBTC made investors feel it was unrelated to them, so it is also normal for other coins to experience a flash crash.

We believe that if Bitcoin experiences a pullback, Ethereum and other altcoins will also plunge significantly. Do not think that other altcoins are rising, and that the market is still in a relatively stable condition. The purpose of the rise can also be to prepare for a significant drop, clearing out long positions first.

Therefore, we focus on short positions while respecting the market. If we successfully touch the peak this time, we can use floating profits to increase our positions and continuously enlarge the position, with our average price around 3490.

#ETH市场新动向 $ETH

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