The pain of August is over, hopefully September will bring a turnaround
The violent fluctuations in August have finally come to an end. For investors in the cryptocurrency circle, this month has been really tough.
After the correction in early August, the market trend continued to fluctuate, making people feel extremely exhausted. If the market in the first five months mainly tested investors' patience, then August tested everyone's confidence in the cryptocurrency circle.
Time flies. It has been six months since Bitcoin last broke through its previous high. In the past six months, the market turmoil seems to have exhausted the funds of many investors. Therefore, in the current environment, many people are pessimistic about the market outlook and generally believe that there will be another round of big declines. Only after the plunge will the bull market begin. As for where the price will fall and where to buy the bottom, everyone has different opinions.
At present, everyone is generally looking forward to the arrival of interest rate cuts and a bull market, but without a sharp drop, a bull market may be difficult to achieve. Why does the market need a wash?
Imagine if the market sentiment is generally bullish and most people are long, can the market continue to rise? Everyone is making a lot of money, but where does this profit come from? Is it falling from the sky?
The most basic logic is that there must be enough shorts in the market to drive the market up. Because the gains of the longs come from the losses of the shorts.
Is September the last chance to buy Bitcoin (BTC)?
Everything will eventually come back to sweetness
Always believe that the bad times of the moment are only the brief darkness before dawn. All the hardships you experience will be the foreshadowing of future surprises. Flowers will bloom along the road, and so will the road ahead. Mountains have peaks, lakes have shores, and everything will turn around in the long journey of life. When you feel the aftertaste is bitter, please believe that everything will eventually turn sweet.
The market continued to fall over the weekend, and retail investors continued to be bearish on FUD, but whales kept buying and buying and were not idle. This is the current situation of the market.
After the high-level shock, Bitcoin continued to fall over the weekend, and then the pessimistic mood continued to spread. The panic and greed index dropped to 26, a significant drop from 55 last week. Such sentiment appeared because everyone was worried about liquidity issues.
After ICO and VC, everyone began to embrace the pvp model meme. Then when the meme performed poorly recently, everyone became even more pessimistic. On a macro level, they were worried about the US economic recession, and on a micro level, they were worried that the industry would not innovate and would not be able to bring sustainable growth.
Although panic is spreading, if you look at the whales on the chain, you will know that they are not selling, but continuing to buy. Every time there is general fear in the market, it is often accompanied by opportunities.
Be patient
The current wash-out is only a temporary fluctuation. Spot holders should be patient and not worry about short-term price fluctuations.
Even though BTC’s recent performance is worrying, big moves tend to come quietly during such times of sentiment.
The next focus of Bitcoin on the daily level is the 120-day moving average. If it can stand above 64,000 again, it is obvious that a large wave of market minutes is coming. Before it fails to stand above it, it can be understood as a shock adjustment.
The key factor is whether the spot market decides to buy back in or to launch another targeted short-selling rally. Before that, the bearish sentiment that permeates the entire market is not a problem.
Don’t follow the crowd when most people are looking in the same direction, but don’t go in the opposite direction just because everyone is looking in the same direction;
The stage when trends and volatile market patterns change into each other is often the time when you lose the most money. If you don’t understand it, it’s better not to do it. If you don’t do it, you won’t lose money, and if you don’t lose money, you will make money.
I still say that I am very optimistic about the market in Q4. Even now, I don’t see any point of continued pessimism, so hold on and stay optimistic.
