Bitcoin reached $96,999, just a step away from $100,000.
One coin, one villa; this once fantasy has ultimately become a reality, albeit a small villa, a low-end villa, but it can be considered basically achieved.
Sadly, most people have already handed over their coins.
Having risen to this extent, something interesting happened.
1. The contract dragon slayers (short sellers) keep getting liquidated, continuously adding margin until they reach zero. This is what I repeatedly mentioned in my previous articles as 'beware of short squeezes', especially with Bitcoin.
2. Altcoins continue to decline; Bitcoin is seriously draining liquidity.
Interestingly, many people actually lost money, the ratio is extremely high.
Fortunately, the altcoin projects in Wang Ge's social group started to reduce positions after the middle of the month, selling at highs and keeping a good base position. I have explained the reasons for this in my public account; mainly, when Bitcoin is draining liquidity, it is reasonable for altcoins to benefit from a rebound, but the risks are also greater. Therefore, reducing positions before Bitcoin pulls back is a helpless move.
3. MEME plummets, with a large number of retail investors trapped.
The four most recent articles, many of the viewpoints and trends have already come true.
Bitcoin surged to $90,000, rising nearly $10,000 overnight.
Bitcoin touched $93,899, setting a new historical high!
Trump's victory, Bitcoin breaks through $76,000, some things you need to know.
Especially in yesterday's article, I reminded everyone to be cautious about shorting; Bitcoin is very likely to surge to 95,850. This position has now broken through and exceeded by a thousand points, but altcoins generally did not follow the rise.
Looking back at the end of last month, I reminded everyone to pay attention to the large orders around $61,500, which indicates a bullish direction.
Although many short positions accumulated yesterday, there was no obvious 'big order' like around $61,500, which means the possibility of a breakout is greater. $95,850 is the price where retail investors are close to the majority being liquidated.
I found that even if I tell everyone the reasons for the rise and the price points, many people will still go short yesterday, which reflects the retail investor sentiment.
Similarly, after yesterday's article was published, MEME started to plummet, especially in the MEME section of BitF, with a huge drop, likely trapping a large number of people again. Everyone makes money when it's profitable, but only what truly ends up in the pocket is real.
Looking back over the years, what have retail investors learned?
The answer is: nothing has been learned. The 80/20 rule of the market will never change.
Back to the crypto market.
With Bitcoin rising to this point, I no longer expect it to continue rising, but rather to move sideways with slight declines, yet the market makers will not follow my thoughts.
It is expected that there should be a rapid upward spike before considering reversing to a high short position; at this stage, shorts should be small, and one can sell spot.
Last night, I drew a line for Bitcoin, specifically: Bitcoin is very likely to break through an extremely high point, quickly retract (it must be quick), then stabilize for a while before falling again, which can be confirmed as a weak trend. Before similar indicators appear, do not consider reversing.
If it can stabilize and slightly decline, returning to around $80,000, it will restore confidence in the altcoin market, and a bull market may come.
Trump's election led to a drop before a rise; being elected is good news.
Trump's ascendance saw a rise first, then a fall; the positive news landing may turn into negative.
In summary, whenever it drops, down to a certain extent, and when key indicators are seen, it is the safe opportunity to buy the dip.
Caution: The end of finance is harvesting, and harvesting only targets fools, those seeking to attract attention, and those chasing emotions.
Note: Market predictions carry risks; the analysis in this article represents personal views.
