In the 15 minutes from 5:45 to 6:00 this morning, a single ETH candle plunged about 4%, breaking below 2,100 and hitting an intraday low near 2,060; BTC also fell below 74,000. In short: liquidity is thin early on Monday mornings, making flash wicks especially effective at wiping out leveraged positions.
Three reminders:
1. There’s no reliable explanation yet for this sharp drop. Don’t jump to conclusions, and don’t rush to buy the dip or go short;
2. Highly leveraged long positions are especially vulnerable to these sudden wicks. Check your stop-losses and margin first;
3. U.S. CPI is due this Tuesday at 21:30, so volatility may not be over. Leave plenty of room in your position sizing.
$ETH $BTC —did that wick catch you?
Three reminders:
1. There’s no reliable explanation yet for this sharp drop. Don’t jump to conclusions, and don’t rush to buy the dip or go short;
2. Highly leveraged long positions are especially vulnerable to these sudden wicks. Check your stop-losses and margin first;
3. U.S. CPI is due this Tuesday at 21:30, so volatility may not be over. Leave plenty of room in your position sizing.
$ETH $BTC —did that wick catch you?