#Bitcoin rebounds to $83,000. In a nutshell: Don’t rush to call a reversal—the longs and shorts are taking turns getting wiped out.
BTC fell to around $80,400 at its low on Thursday, then made a V-shaped recovery to above $83,000. About $1.1 billion in positions were liquidated across the market in 24 hours, including more than $1 billion in longs; as prices rebounded, shorts were next to get wiped out.
Three reminders:
1. Getting wiped out on both sides shows that leverage is too high. Even if you get the direction right, you could still get stopped out first.
2. Whether BTC can hold above $83,000 is key. Don’t chase rallies or sell off in the middle of the range.
3. Today marks the first anniversary of last year’s October 10 crash, when about $19 billion in positions were liquidated in a single day. The lesson still stands.
$BTC Were your longs or shorts the ones that got wiped out over the past couple of days?
BTC fell to around $80,400 at its low on Thursday, then made a V-shaped recovery to above $83,000. About $1.1 billion in positions were liquidated across the market in 24 hours, including more than $1 billion in longs; as prices rebounded, shorts were next to get wiped out.
Three reminders:
1. Getting wiped out on both sides shows that leverage is too high. Even if you get the direction right, you could still get stopped out first.
2. Whether BTC can hold above $83,000 is key. Don’t chase rallies or sell off in the middle of the range.
3. Today marks the first anniversary of last year’s October 10 crash, when about $19 billion in positions were liquidated in a single day. The lesson still stands.
$BTC Were your longs or shorts the ones that got wiped out over the past couple of days?