Today, the market delivered a counterattack!
One word from Powell caused the Nasdaq index to plummet by 3.61%, close to the largest drop in recent years. Moreover, Powell's hawkish remarks don't stop there! He also specifically criticized the crypto market, stating that the Federal Reserve cannot hold Bitcoin, causing Bitcoin to drop by 5%. It's simply too bad.
This is a hard sell-off! No one can predict what he said; this is an unexpected disaster. It's not just retail investors; even Wall Street can only stand there and take the hit. The main reason for this sharp decline is that Powell indicated there wouldn't be too many interest rate cuts next year, possibly just two cuts, leading to declines across various assets. However, the drop in Bitcoin is similar to that of the Nasdaq index, with not much additional decline. The moving average indicator shows that the four-hour chart has fallen into a dense support zone. The only possibility of breaking down here would be a true black swan event; otherwise, all declines are just paper tigers!
Personally, I feel that the 'sharp drop' in the crypto market is brought down by contracts.
Because I looked at the futures market yesterday and the liquidation heat map, the long positions are three times the short positions. In the last 24 hours, a total of 270,525 people have been liquidated globally, with a total liquidation amount reaching 781.49 million US dollars.
In every bull run, a pullback of more than 30% is very common. A leverage of 3x+ needs to be washed frequently. Otherwise, why should the spot price double while they earn an extra 2x for free? Right now, this so-called 'sharp drop' or 'bloodbath' is just a -9% decline from 100.8k to 98.8k, not even 10%. It's too gentle.
The altcoin market has suffered serious losses, and the altcoins have basically bottomed out. However, there is hope that the main market and altcoins will rise together. Previous articles have mentioned that the altcoin season in 2021 was relatively strong, and this round of altcoin season is taking three steps forward and two steps back.
The opportunity to escape from altcoins and the opportunity to get on board are actually two sides of the same coin. The key is whether you are trading based on emotions or using risk management as the core of your strategy. As for the 'last escape opportunity,' it's just a topic for generating traffic.
I have always said not to go all in; leave some USDT! (Including what I have always said: if you like to play long-term, you should at least have three layers of BTC in hand). Investment is all about position, algorithm, and strategy! You really need to review often. Spot trading is inherently a cyclical product, and the thinking between spot and contracts is completely different. Spot trading is very stable when layered, while layered contracts are easy to get liquidated!
Even in a bull market, there will be many pullbacks. We just need to withstand this wave of pullback; when the good market arrives, we can be ready. The bull market has not ended, and we can still buy small on small dips and buy large on large dips!
1.PNUT:
The squirrel has already given a hint: first, the rise is not as expected; second, the vehicle is too heavy and needs to adjust. It has now fallen below 1 US dollar, and the range of 0.5-0.7 can be considered for some low absorption.
2.JTO:
Just accumulate in batches below 3.3; this coin adjusts quickly, and the rebound will be fast as well.
3.RSR:
Currently, it is making a second retest and has also fallen below 0.012. Below 0.012, we can look for positions to absorb in batches. This adjustment of RSR is quite violent, and it is expected that there will be a good upward trend after the adjustment ends.
4.DOGE:
As long as it can maintain a high oscillation above 0.33, there won't be too much trouble. However, if it falls below 0.33, we might see the dog at 0.27, and then it will be an excellent opportunity to add positions again. Overall, I am optimistic about Dogecoin; just buy low and hold on!
5.SOL:
Today, there is a low absorption opportunity for SOL at 200. Keep some positions to see if there will be opportunities to absorb below 200. As long as SOL dares to drop, just buy boldly; there is no need to hesitate!
