Bitcoin's sharp drop drags down the entire market! Did you avoid this wave of plunge?
In recent days, Bitcoin has dragged the entire market down sharply, feeling like a merciless meat grinder. As early as December 17, I warned everyone that the market might need to adjust, and technically it showed signs of a downturn, specifically reminding everyone not to open contracts. Friends who listened should have avoided this big drop. What's next for the market?
This big drop has numerous reasons. First, the old Powell from the Fed made it clear that they cannot buy Bitcoin and do not intend to change the law, which poured cold water on the market. Then, those who previously made money now want to withdraw their funds to secure profits. Additionally, the possibility that large holders intentionally suppress prices to hit retail investors cannot be completely ruled out.
However, to be honest, although this drop is severe, falling from 108,000 to 92,280, it is still less than a 15% drop, which is relatively mild. In comparison, many altcoins have dropped more severely, like Dogecoin (DOGE) which fell from 0.48 all the way to 0.262, a direct drop of 45%. Reflecting on the last correction, Bitcoin fell from 73,777 to 49,000, which was truly shocking, with greater drops and psychological impact.
Currently, Bitcoin seems to have stabilized somewhat, with prices rising to around 97,000. It is estimated that the market will oscillate and consolidate at this position over the weekend, and you can observe for a while. This is not a suitable time for aggressive operations, but if you think the price is right, buying some spot for holding might not be a bad choice in the long run.
As for BNB, it has also dropped quite a bit, falling from a high of 793 to around 620, a drop of about 21%. However, as a mainstream coin, it holds up relatively well. If you are good at spot quantitative trading, this might be a good time to consider some short-term operations for potential gains.
ETH is in a tough spot, dropping to a low of 3100, nearly a 25% drop. However, after this rebound, it's time to adjust the strategy. Fortunately, some institutional ETFs are buying, at least providing some support; otherwise, this drop could be unpredictable.
Today's Bitcoin market analysis shows: the 1-hour level is up, but the momentum is insufficient, likely to consolidate sideways. The 4-hour level is also up, while the 12-hour and daily levels are currently in a downward state. The intraday resistance is at 100,000, and the support is around 94,000; you can refer to these key points.
In the secondary market
Apart from BTC, among the altcoins, the Trump concept coin is performing quite strongly; ENA has basically broken even, and SUI remains strong. The newly launched VC coins MOVE and Usual are also performing impressively. Overall, the trend in the secondary market is that the strong get stronger.
However, this time everyone hasn't mentioned 'altcoin season' much; in fact, once the altcoin season truly arrives, that is the most terrifying.
What is an altcoin season? It refers to when those previously unheard-of junk coins start to rally, completely mismatched with the market's fundamentals. At this time, the trend often indicates a peak, and once missed, there will be no chance again.
Currently, the market is still in a localized trend, and the overall heat has not fully erupted.
PNUT, NEIRO, ACT: Will they stage a comeback like BOME?
Today, a fan in the group asked me, and I'll also post it in the article.
Let's first look at the performance of BOME in the first half of the year; the situation of these coins is somewhat similar:
1. Similar drop: BOME fell 75% from its peak, BONK even dropped 80%, but later rebounded and broke through previous highs. Even if PNUT and NEIRO fail to return to their previous highs, at least doubling from their lows is still possible.
2. Signs of market manipulation: The founders of PNUT and ACT have previously engaged in some controversial operations, but BOME also had similar behavior at that time, which was considered market manipulation. So, this might be one of their manipulation tactics.
3. Potential of the CB roadmap: MOODENG and PNUT have already appeared on the CB roadmap, but have not yet started to rally, and the market's expectations have not been fully released.
However, it is important to note that during the rebound process, there may be a secondary adjustment; FUD (fear, uncertainty, and doubt) can be frightening, but it doesn't significantly impact the overall trend. The key is to be rational and not be misled by the manipulators.
Do you think these logics are reliable? What do you think of this possible rebound opportunity?
Why is it so hard to make money in this round of market? I've summarized a few reasons; take a look:
1. Always holding short positions in BTC, either facing liquidation or struggling to hold on.
2. Putting all funds into some junk altcoins, getting slapped in the face after several operations, and stopping losses multiple times.
3. Heavily investing in meme coins, especially those newly released meme coins, losing more than 70% after several rounds.
Warren Buffett once said, if you don't want to hold a stock for ten years, you shouldn't hold it for even a day. If a coin doesn't have a long-term holding logic, participating in short-term speculation will likely result in being cut. For long-term investments, these coins are far inferior to Bitcoin and Ethereum, and also not as good as the leaders in major sectors, so some junk altcoins have no investment or trading value, and the best choice is not to touch them long-term, otherwise, there will be a risk of missing out on a bull market.
Every drop is accompanied by a wail from the market, blood flowing like rivers; the cryptocurrency circle is so bloody, yet it keeps the retail investors addicted, both loving and hating it. Since we can't stay away, let's embrace it; life must go on, and we must navigate the crypto space.
So, how to avoid losses in this market round? Here are 10 fatal mistakes and how to avoid them:
1. Not setting clear profit targets
How to avoid: Set clear profit targets before each investment; take profits in stages to ensure gains are locked in early and avoid givebacks.
2. FOMO trading without a plan
How to avoid: Before entering the market, have clear reasons for your actions, and don't just follow others because they say it's good; avoid impulsive trading due to missed opportunities (FOMO).
3. Ignoring risk management
How to avoid: Diversify investments, moving some funds to stablecoins and other low-risk assets; set stop losses to ensure that individual investments do not pose huge risks.
4. Lack of patience, exiting too early
How to avoid: Trust your own research, avoid frequently checking the market and selling too early; give investments enough time to mature, allowing the market to find its own path.
5. Trading strategies are too complex
How to avoid: Keep strategies simple, relying only on a few key market signals; avoid over-analyzing and making delayed or hesitant decisions.
6. Over-trading, profits evaporating
How to avoid: Reduce trading frequency, focus your energy on a few trades you are confident in; let your investments grow by themselves, and there’s no need to rush to make profits every day.
7. Giving up on well-performing investments
How to avoid: Don't sell off well-performing assets just to seek new opportunities; let those well-performing assets continue to appreciate.
8. Overconfidence, increasing risks
How to avoid: Stay humble, respect the uncertainty of the market; control positions to avoid taking on too much risk due to overconfidence.
9. Over-diversification of investments
How to avoid: Focus on 2-3 projects that you truly understand and trust; quality is far more important than quantity, don't try to diversify too much.
10. Chasing unrealistic hundredfold returns
How to avoid: Invest in high-quality projects with strong fundamentals and real applications; remember, true massive returns usually come from long-term holdings of high-quality assets.
In a bull market, to make a profit, it's not just about seizing opportunities, but also about learning to avoid risks. By setting clear goals, developing strategies, managing risks, and staying calm, you can avoid these common mistakes, maximize returns, and maintain long-term success.
The altcoin market is full of temptations, but only discipline and strategy can keep you undefeated.
Finally, let me share a few important pieces of information with everyone:
1. South Korean Deputy Prime Minister Choi Sang-mok stated that the government holds a positive attitude towards cryptocurrencies, has decided to postpone the introduction of the crypto tax, and is formulating new regulatory policies.
2. Deutsche Bank is developing a blockchain network based on ZKsync technology, called Project Dama2, aimed at improving trading efficiency and strengthening compliance regulation.
3. Monitoring data shows that investors withdrew 204,772 Bitcoins from exchanges in the past 60 days.
