📊｜A trap before the rate cut? Professional analysis of the BTC plunge on the 28th
📝Bitcoin experienced a sharp price drop after five o'clock yesterday morning, hitting a low of $58,000, marking the lowest price in nearly ten days. Ethereum was not spared and temporarily fell below the price of $2,400. This drastic price fluctuation caused more than 80,000 investors to suffer heavy losses and serious liquidation.
🔻In 24 hours, the total liquidation of the entire network exceeded $319 million, of which the long liquidation amount reached $280 million. This sharp price drop reflects the lack of market liquidity and the drastic changes in investor sentiment.
Prior to this, the price of Bitcoin was still fluctuating around $62,000, but then due to increased selling pressure, the price quickly fell below the key support level. This market volatility has not only affected Bitcoin holders, but also other major cryptocurrencies, such as Ethereum, which fell 9.09% in the past 24 hours.
♦️8.28BTC Dive Analysis:
1️⃣This plunge was caused by experts: macroeconomic factors, changes in technical analysis indicators, or large-scale liquidity shortages. But I think it is the dealer who seized the opportunity that everyone thought that interest rates would be cut in September and rushed to cut back.
2️⃣A large number of liquidations are usually related to leveraged trading, which shows that a large number of speculators in the market bet that interest rates will definitely be cut in September, so they opened high leverage, which made the market more fragile and more sensitive to price fluctuations.
3️⃣The sharp change in investor sentiment may be due to pessimistic expectations for the market's short-term trend, or a panic reaction to some unknown event.
4️⃣The sharp drop in the prices of major cryptocurrencies such as BTC and Ethereum may trigger a chain reaction, affecting the stability of the entire crypto market.
5️⃣For long-term investors, this volatility may provide a buying opportunity, but at the same time, it is also necessary to realize that there may be more uncertainty and volatility in the short term.
🔻In general, due to the dominance of BTC and Ethereum in the cryptocurrency market, their price dynamics will continue to have a significant impact on the entire market. Refer to the risks you need to pay attention to before and after the interest rate cut that I posted earlier. The interest rate cut does not mean an immediate surge, but more ups and downs
