BTC is BTC, and altcoins are altcoins; they cannot be compared on the same level.
BTC had a small pullback of 5 points, leading to an avalanche of altcoins. This time, the total liquidation amount across the network exceeded $1.7 billion, but BTC accounted for less than $200 million of that. Any single altcoin's liquidation amount has exceeded tens of millions. Why is that?
Because Bitcoin is no longer just a product of the crypto world; it has become a coveted asset on Wall Street, a treasure in the hands of institutions, supported by huge external funds, making a market crash relatively less likely.
On the contrary, in the crypto world, altcoins are all illusions, pretending to be muscle men while being crushed by barbells. The recent rise of altcoins has largely been driven by a generally positive market sentiment rather than their own strength, and there is no talk of fund rotation, so the strength is an illusion. Once the leading figure runs away, the altcoins will reveal their true form.
Yesterday, I advised VIPs to reduce their positions to avoid risks, but I certainly do not have a negative outlook on the market. This is a very typical behavior of a bull market cleaning up speculative leverage (betting on altcoins). If we do not clean up the chasing investors, how can we welcome the next round of increases next year?
Yesterday, the number of global liquidations was 56,573, with a liquidation amount of $1.704 billion. This data clearly indicates that this is the largest liquidation figure in cryptocurrency history, with the highest number of liquidations.
So let me remind everyone again, a crazy bull market is the best opportunity to make money, but seven years of experience have taught me: the real crazy bull market is when 98% of the retail investors lose the most money. Because many people, in the trading process, only focus on offense, with leverage from 3x to 100x, hoping to make a million as soon as they open a position! Such trading will only trap you deeper, and the losses will become larger.
Speaking of the current market situation
First, look at BTC. This round of rise started in early September, showing a five-wave pattern. It has completed waves 1, 2, and 3, with the peak of wave 3 being the previous high of 104,000. It is currently in wave 4 adjustment. From the chart, around 91,000 is a previous platform level + Fibonacci support level + support level from the spike on the 12.5th. As long as this level does not break, it will not constitute a reversal.
Now, let's look at ETH. ETH has rebounded to around 4090 this round—near the high from March—encountering resistance and starting to pull back. This morning, it pulled back to below 3500, which is also a previous support platform.
ETH has also shown a significant price difference between spot and futures. At the price low, perpetual contract prices are below spot prices, with a difference exceeding 1%. This indicates that a large number of liquidations have occurred on the futures side, and the leverage has been cleared relatively thoroughly. Therefore, in the short term, pay attention to whether this price will break down again.
The adjustment phase is a time for reflection and experience enhancement!
Currently, the players who are stuck in the market are still those who chased after the high-altitude altcoin market. So if you are stuck now, you should reflect on your operational thinking and rhythm. Although today's market is adjusting, our overall returns, including costs, have not been affected, and many altcoins have not even reached our cost price so far.
Timely adjustments to establish your own trading rhythm, including good investment strategies, will help us avoid missing out on the entire bull market. After all, the current market has been called the craziest bull market in the crypto world! We have waited for three years just for this profitable market effect to arrive.
The market has not continued the upward trend from last week and has been in a grinding adjustment period. This phase is the most exhausting.
During the crazy bull market, how should ordinary retail investors optimize their operations:
Stay calm: Although market sentiment is high, it is crucial to remain calm and rational. Avoid blindly following trends, and maintain a clear investment logic.
Invest wisely: Never put all your funds into leverage and contracts. If a situation like today occurs, you will only be left with tears.
Set stop-loss and take-profit: Set stop-loss and take-profit points for each investment to help lock in profits and limit losses.
Learn more: Repeatedly review and summarize, learn from successful individuals. Much of the valuable content in the crypto world requires you to spend money to learn; through paid learning, you can acquire what you truly want.
Maintain a rational asset allocation: Do you know how much you want to earn this round? How to reasonably utilize your funds with the lowest risk to achieve the lowest risk and the highest utilization!
It is now basically confirmed that the bull market has started. With the easing of policies, many opportunities await us to seize. There will be periodic wealth code recommendations in the group, guiding everyone to grasp the upcoming bull market together! Let's achieve our goals and dreams in the crypto world together!
