Bitcoin was hit by the news, and countless contracts were liquidated. Last night was another sleepless night. Spot profits were sharply withdrawn. What should we do?

Last night, I was going to talk about the impact of whether the ETF is passed on Bitcoin, but Bitcoin plummeted in the evening. For old investors, this may not be surprising, but for those who are copycats or new investors, it is still quite uncomfortable. So I temporarily held a live broadcast at Binance Square at 10 o'clock last night to talk to everyone about the follow-up strategy.

In the event of a sudden pullback in this kind of bull market, there is actually not much that can be done, because all the good strategies are made in advance, such as taking profits in stages, placing high-level orders to sell in advance, etc. Now, in this kind of waterfall, what we can do is to be more aggressive in the bull market and not be thrown off the bus. In order to prevent the pullback from lasting too long, we can use short hedging, or take advantage of low positions to bet on a rebound, choose to change positions according to the decline of the currency held, and do not buy at the bottom frequently, etc.

After this wave of callbacks, when the real bull market comes, the price of coins with concepts, technological innovations, and traffic will climb to another peak. Tracks such as Ai, Gamefi, storage, and DEFI are likely to see a blowout.

In general, at the beginning of 2024, the trend of Bitcoin is still good. Compared with the previous bear market, the new investors in this bear market are relatively happy, because this time Bitcoin is harder and more playable than last time. From the highest point of this bull market, Bitcoin has pulled back about 77%, and in the previous bear market, Bitcoin pulled back about 85%. Don’t underestimate this drop of less than 10%, because it has dropped so much, which is enough to make many famous companies face difficulties, on the verge of bankruptcy, and lose faith!

I still remember that in 2018, I bought the bottom of Bitcoin near 6000U many times. After Bitcoin verified that 6000U was the iron bottom several times, the last time it fell to 6000U, I took all the profits and entered the market with a heavy position. As a result, Bitcoin went down all the way and fell to around 3000U. That year was really hard to endure! I saw my friends quit the circle one by one. Some of them were in debt because of buying the bottom, some lost their faith because of depression, and some were afraid of quantum computers. In short, after a long time of bear market, there is always a reason for you to leave. It is really difficult to stick to it!

When Bitcoin fell to around 3000U and Ethereum fell to around 80U, you wanted to buy at the bottom, but you didn’t have much money and you didn’t have enough faith. At that time, all kinds of news about the death of Bitcoin were flying around. The most representative ones were that quantum computers and digital currencies of various countries would kill Bitcoin.

Although I knew that these were not very likely, I was definitely worried. After hesitating for a long time, I finally took some money to enter the market again after the market recovered slightly. The picture below is what I posted on my Moments after I bought the bottom!

After entering the market, they experienced a big correction again, especially some cottage industries, which were almost reduced to zero, and then they were shaken off by 30%. That would be really desperate! The trend in the figure below is unbearable for anyone. We often say that a blunt knife cuts meat, which makes people uncomfortable. The figure below shows a sharp knife and a blunt knife cutting together.

But fortunately, I bought the bottom before dawn. Binance is like a ray of light, which directly illuminated the bear market and warmed the entire tormented cryptocurrency circle. In the last deep bear market, Binance was the first to blow the clarion call for counterattack. This is one of the important reasons why I love Binance. As the Binance platform coin ecosystem went viral and major exchanges followed up simultaneously, the market began to pick up, and I, who had lost too much blood in the bear market, was also gradually recovering.

Soon after, everyone's view on the market began to turn from bearish to bullish, institutions began to make trouble, and new investors gradually entered the market. With the arrival of halving, the craziest bull market in the currency circle began. After that, DEFI, NFT, Gamefi, MeMe and others successfully emerged from the circle, injecting innovation and vitality into the market and providing more playability. Giants or helmsmen of traditional industries such as Grayscale and Musk also brought in funds. The currency circle is very lively, and the price of coins is also booming!

According to the rules of the previous bull-bear switching, the bull market will start after the halving, and the bull market will last for about a year, and the rest of the time will be a bear market. Generally speaking, the bull market is short and the bear market is long! Of course, black swan events cannot be ruled out before the halving, such as the 312 and 313 events!

In January of this year, the Bitcoin ETF also reached a node. This ETF has actually been in the works for a long time, but it is still the same thing. This time it is very likely to continue to mess things up, not be approved, and continue to drag it out. Of course, many people are optimistic that the ETF can be passed. As a result, a wave of news that the Bitcoin ETF failed to pass this evening directly smashed the Bitcoin market and led to the collapse of the broader market.

As an old cryptocurrency investor who has experienced several bull and bear cycles of Bitcoin, I think that these have little impact on Bitcoin, and their impact is generally short-lived. Only the halving has a real impact on Bitcoin. It is expected that the Bitcoin halving will take place on April 25, 2024, just a few days after the last halving. After the halving, it means that it will be more difficult for the maintainers of the Bitcoin network to obtain Bitcoin, and the cost they spend will increase exponentially. In this case, miners will be more reluctant to sell Bitcoin. Due to the halving of Bitcoin, the selling pressure of Bitcoin in the market will also be reduced to a certain extent, which will easily drive up the price of Bitcoin, thereby achieving a relative balance.

This article does not constitute any investment opinions or suggestions. There are risks in the cryptocurrency circle!

That’s all for today. If anyone wants to interact, you can find me on Binance Live.