"The recent plunge in the cryptocurrency market may be the long-awaited opportunity for investors to buy on dips!" Daniel Cheung, co-founder of Syncracy Capital, wrote on December 9 that although the market will fluctuate in the short term, this correction may last much longer than expected, and this is the best time for investors to seize the opportunity. (Does anyone say that?)
Behind the callback: the market is "washing out"
Cheung believes that the recent plunge in the entire crypto market is not actually a "crash", but a process of cleaning the bubble. After this round of market crash, traders may have more time to take advantage of the current low price opportunities.
Just like when buying stocks, we often say "the deeper it falls, the more you can pick up", and now is the best time to "buy on dips"!
However, Cheung also mentioned that many traders have shifted to short-term trading mode, and everyone is looking for quick profit-taking.
According to CoinMarketCap, the total cryptocurrency market capitalization has fallen 5.41% in the past 24 hours to $3.44 trillion.
Some altcoins crashed 30% in one day
Speaking of this market crash, we have to mention those altcoins that have plummeted!
According to crypto data company Santiment, several altcoins that have performed strongly since October have collectively plunged today, with a rather alarming drop. Especially Kaia (KAIA), which has directly fallen by 31.3%!
Santiment pointed out that if retail investors sell too early due to panic, the market may see a rapid rebound.
Some cryptocurrency analysts also predict that assets such as TRX, AVAX, and DOT may rebound quickly in the short term. This drastic market fluctuation has also made everyone see the charm of "ultra-short-term trading", but many investors have also been "trapped" due to improper operations.
Pav Hundal, chief analyst at Swyftx, also said that this wave of market correction may be just a "flash in the pan." He said: "Traders started buying leveraged longs in large quantities before the crash, and once the liquidity in the spot market disappeared, they were in trouble."
According to data from CoinGlass, approximately $1.58 billion in leveraged long positions in the crypto market were liquidated in the past 24 hours, and the market turmoil can be said to be shocking.
Market timing is too hard to grasp? But opportunities still exist
Despite the market volatility, Cheung also admitted: "It is extremely difficult to grasp the market timing." He mentioned that in previous cycles, many people operated with the mentality of "hold and buy on dips", but now more and more people are trying to predict the "top" of the crypto market.
However, this just makes him more convinced that this wave of market may last longer than everyone expects.
As for the future trend of Bitcoin, some analysts believe that although the recent decline is large, as Bitcoin has broken through the 60,000 mark, the pressure on sellers has been significantly reduced, and future declines may not be so drastic.
Market uncertainty has investors sometimes happy and sometimes sad, but as Cheung said, this "buy the dip" opportunity in the cryptocurrency market may last much longer than we think.
For investors who believe in long-term value, now is the time to "pick up bargains." After this wave of correction, who knows if there will be a bigger wave of growth?
