💥 August 4 and 5, 2024 will be remembered for a long time because everything went down: from stocks to cryptocurrencies. NASDAQ lost about 20% from its all-time highs in a few days, S&P500 3.5%, South Korea stopped selling after the market fell 4.6%, the Taiwan index had its worst day ever recorded in history, the largest Japanese banks lost 10 to 15% (NIKKEI -12.5%), the VIX (S&P500 fear index) is touching 50 points (2022 collapse values), BTC lost 15%, ETH over 20% and many altcoins recorded -30% in 24 hours. Gold and silver have also fallen.
What is happening?
What caused the market collapse? War? Recession? I would like to emphasize that in my opinion this is not the beginning of a Bear Market but a retracement.
Reasons why cryptocurrencies are crashing:
• FED has not yet cut rates
• Decreasing probability of Trump's presidency (Harris has regained consensus in recent days)
• Fears of recession
• Stock market collapse
• Warren Buffett liquidating half position in Apple
• Possible outbreak of war (Israel/Iran)
• Jump selling crypto
• Mt.Gox BTC distributions
• Sale of seized BTC of various governments (Germany and USA)
• High leveraged positions liquidated
• Carry Trade on Yen/USD
💥 3 useful tips to consider ✅
• Never forget that the odds of a long trade being a winner increase when your entry is as close to the demand zone as possible.
• Don't make your entry immediately when the price reaches a demand zone, always expect the price to form an HL above the previous low, if the price action does not show a reversal pattern, the price will not go up.
• Never forget to place your stop losses, they allow you to save time and adjust your loss tolerance based on the risk level of the current scenario.