Is Bitcoin's spike making you anxious again? After Bitcoin breaks 100,000, the market becomes turbulent, and occasional spikes in Bitcoin can lead to drops in altcoins. I believe many people feel a sense of crisis from this.
Many people ask: Is liquidating positions possible?
I will clearly tell you that if you liquidate your positions and exit, that's fine. However, if you want to look back, I do not recommend clearing out.
First, whether from a long or short perspective, liquidating Bitcoin is the wrong choice.
Secondly, from a few months' short to medium-term perspective, no matter which altcoin you liquidate,
In the end, liquidating positions is itself a trap in a bull market. If you liquidated your positions in early April, you might have gotten back in during August, September, October, or November, but you would have also cleared out. This is a matter of investment habit. Once you liquidate and make a wrong judgment, you will fall into a situation of constantly chasing after prices, buying high, or watching others profit while you can only think like a novice due to being in cash, leading to a downfall (shorting), and if you take this step, hitting zero is only a matter of time.
Therefore, liquidating positions in the middle of a bull market is definitely a trap. The candlesticks in a bull market trend upwards with fluctuations, not in a straight line; corrections are inevitable. It's all a trick by the manipulators; I am not worried at all.
In a bull market, 99% of the time, the purpose of a drop is to facilitate further rises. If there is a significant correction, it must be accompanied by a strong rebound; this is determined by the theory of the bouncing ball. If it's a bear market, then a major correction belongs to a one-sided decline, and the rebound highs after the correction will be lower each time.
So, in a bull market, buy on dips; small drops, buy small; big drops, buy big; and crash, buy heavily. This is the only winning strategy in a bull market.
There are two major drawbacks to shorting in a bull market: either you get stuck for a long time, or you miss out massively. Furthermore, can we just stop trading every day because there might be a big correction? Is staying in cash the safest? There's always a risk of a plane crash when flying; does that mean we shouldn't choose to fly? Until that time comes, don't worry too much prematurely. Earn the money in front of you first, then be anxious or cautious; it won't matter then.
Now, in the current market situation, Bitcoin has been squeezed for a while, and altcoins have also rotated for some time. What should we do?
In fact, I already provided the answer in the articles a couple of days ago (What coins to buy after Bitcoin hits 100,000? The only two coins that can genuinely yield 100 times by 2025!)
During a correction period, increase your positions in coins that you are optimistic about but have not had the chance to enter, coins that have not formed significant holding pressure in the short term, and coins that do not show topping signals.
During the rise, reduce long-term holdings by at least one-third, then gradually decrease, you can place high-priced orders to reduce or sell in batches.
Never think that every rise will be a straight line upward. Similarly, don't think that every drop will be a curved decline. In the same way, I don't consider today's drop a risk, although it doesn't constitute a big opportunity, the rotation trend will likely continue. It's like when I said the last time we fell to 89,000, and similar to when I thought big drops before the election were not a crisis, but an opportunity. We shouldn't be dominated by emotions and candlesticks; we should buy in batches, sell in batches, buy in batches, sell in batches.
Some people are asking if there will be a major correction soon.
On December 18, the Fed will cut rates, and Japan will raise rates! Around December 20, there might be a significant spike. The market won't enter a quiet period for ten days in advance. There is still time; you can consolidate 72 hours in advance. At that time, maintain control over your positions and leverage, and defend at the right position; what is there to fear? Whether it's a major adjustment or a minor one, treat it with a calm mind.
Finally, let me give you a piece of advice: with light positions, you can add more to your core holdings; clearing out your positions can easily lead to missing out. Liquidating feels good temporarily, but you will eventually regret it.
That's all for today. During the bull market phase, many people hope to have a free discussion. If you really can't handle the cryptocurrency market on your own, don't force yourself; come find me to learn. Stay updated with the latest information, plan your investments, embrace the bull market, improve your winning rate, and say goodbye to being stuck at high positions.