đ„ 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:
âą FED has not yet cut rates
âą Decreasing probability of Trump's presidency (Harris has regained consensus in recent days)
âą Fears of recession
âą Stock market collapse
âą Warren Buffett liquidating half position in Apple
âą Possible outbreak of war (Israel/Iran)
âą Jump selling crypto
âą Mt.Gox BTC distributions
âą Sale of seized BTC of various governments (Germany and USA)
âą High leveraged positions liquidated
âą Carry Trade on Yen/USD
đ„ 3 useful tips to consider â
âą 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.
âą 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.
âą 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.