The market crashes on December 10th and 6th shocked everyone, but they also contained opportunities.
On those two days, the amount of liquidated contracts in the market was staggering, reaching 1.5 billion and 1.7 billion US dollars, a sight only seen at the peak of a bull market. BTC fell first, followed by altcoins, with ETH showing varying declines but similar trends.
Before the crash, signs were already apparent in the market. The funding rate soared and then plummeted, affecting both BTC and altcoins, as the frenzy returned to normalcy, signaling a storm was approaching. BTC attempted to break through 100,000 US dollars but failed, experiencing a slight decline before suddenly surging, only to crash afterward due to the accumulation of short positions by major funds.
From this crash, we learned lessons and found new criteria for market judgment. There were clear signs of overheating in the market, such as Musk's endorsement of DOGE, where trading volume increased but prices did not rise, showing a divergence between volume and price. Experienced traders cleared their positions, and the market's coldness intensified.
During the crash, opportunities coexisted. One might try to arbitrage during the crash by taking advantage of the differences in market reaction speeds; or place limit orders in advance based on expected declines, with BTC, mainstream coins, and altcoins set at 90%, 80%, and 70% of their value respectively, fluctuating by 3% to prevent errors.
After the crash, how should we view the subsequent market? Bitcoin, Ethereum, and mainstream altcoins are already at high positions, and it may be wise to sell in batches. However, the bull market is not over; BTC prices remain strong, and the crash has made the bull market healthier, with the peak possibly arriving ahead of schedule in 2025. The market may need to consolidate, and a second bottom could be a good opportunity for increased positions. With the dual festivals approaching, capital is flowing out, and traders may lock in profits, so a short-term rebound could be sought.
The trend of the bull market remains; long-term prospects are promising; mid-term may see fluctuations to digest the gains, with a tug-of-war between bulls and bears; short-term, one could buy on dips to capitalize on rebound opportunities.
In the upcoming layout direction, I will guide everyone to aim for highly profitable opportunities in altcoins, with expected gains of over 10 times being entirely feasible. Like and leave a comment, and I'll help you navigate the entire bull market together!
