Is yesterday's Bitcoin price adjustment extremely good for the market?
The information about the chaotic political situation in South Korea caused the Bitcoin price in this country to drop sharply, impacting the global Bitcoin price. However, the adjustment did not last long, and the Bitcoin price showed a strong recovery.
According to our experience, such quick and short-term adjustments bring many benefits to the crypto market in the medium and long term:
1/ Individual investors will fear FUD and panic sell their altcoins thinking that the price will drop even further. Meanwhile, Whales and Market Makers will take advantage of this to buy, creating strong buying pressure and large volume, reflected through long-tailed candles.
2/ Short-term adjustments liquidate a large number of Long positions on exchanges, reducing pressure on the market. For example, in the past 24 hours, the liquidation on exchanges amounted to over 625 million USD, mostly Long Positions.
That is why we always advise you to hold your Spot positions tightly and limit the use of excessive leverage in Futures Contract trading.
