What caused this sharp drop? Can you pick up the chips covered with blood?

峰哥加密圈 · 2023-08-18T09:22:46.000Z

This was a callback without warning. Around 5:40 this morning, it was the time for the market to change. It was the first time in the past five months that the market fell by more than 10% in a single day, falling to a minimum of around 24,200. The mainstream currency It’s even more disastrous. Ethereum fell to around $1,470, LTC fell to around 50, and any other spot could lose more than 10%. The contract market evaporated with $786 million, and 121,700 users liquidated their positions, setting a record for a single day in the first half of the year. The largest range! It also excludes other liquidation data. Many people asked why the market fell so sharply. I took a look at the news and the reasons are as follows:

This is an unexpected correction. At around 5:40 this morning, the market changed. For the first time in nearly five months, Bitcoin fell by more than 10% in a single day, falling to a minimum of around 24,200. The mainstream coins were even worse, with Ethereum falling to around $1,470 and LTC falling to around $50. Any other spot currency could lose more than 10%. $786 million evaporated from the contract market, and 121,700 users were liquidated, creating the largest single-day drop in the first half of the year! This does not include other liquidation data.
Many people asked why the market fell so sharply. I looked at the news and the reasons are as follows:
Musk publicly purchased a certain amount of Bitcoin in 2021, and wrote down $373 million of Bitcoin recorded in 2021-2022 in the latest balance sheet, indicating that these assets were sold thereafter; in addition, Musk's other company, Tesla, also sold more than 30,000 Bitcoins at a price of $936 million in the third quarter of 2022, accounting for about 75% of its $1.5 billion in Bitcoin.
Everyone knows that Musk is a fan of Bitcoin and Dogecoin. Any piece of news is enough to affect the market. Once this news came out, the result can be imagined. Musk's currency was sold a long time ago, and the short sellers just used this as a trigger. Why did the US government sell B in early July and the Federal Reserve did not move when raising interest rates, but instead moved now? You can think about it. This is not the only reason. There are several other pieces of information that are worth knowing.
Macro information:
1. The major global market indices have collectively pulled back; the three major U.S. stock indices have collectively closed down for three consecutive days, and the A-share market next door has hit a new low since January 13 this year, falling to 3,123 points; in the Asia-Pacific region, the Nikkei fell 2,000 points in two months, and the stock markets of Singapore, South Korea, Hong Kong and other countries are all falling, and some have even hit the lowest point this year;
2. The U.S. dollar hit a one-month high of 103.56 at one point, and even created 7.3495 offshore RMB yesterday, close to returning to the 22-year high in October; at the same time, the minutes of the Federal Reserve's July meeting released in the early morning showed that officials analyzed whether more interest rate hikes were needed at the last meeting on Thursday, and today released a signal that expectations for interest rate hikes are rising.
Objective information:
3. The continuous decline in the liquidity of the crypto market itself is an internal factor that cannot be ignored. Secondly, the volatility of the crypto market has also hit a low point recently, which is a silhouette of liquidity depletion. Combined with the background of the global stock market correction, crypto assets such as Bitcoin and Ethereum, as high-risk assets, are like canaries in the liquidity market. They will undoubtedly be the first to sense and experience a liquidity crisis, just like the selling frenzy in the March 12 incident.
The decline of a number of altcoins this time was relatively limited compared to Bitcoin and Ethereum, and there was no large-scale halving. This seems to be a sign of a liquidity crisis - the best quality and most liquid assets are being sold the most vigorously.
Why is stop loss so important? Can you pick up the chips that are bleeding all over?
Since the huge amount of liquidation has come out, the possibility of another sharp drop in the current position is not great. Of course, it is hard to say what will happen on 312. Therefore, nothing is absolute in the world. You should always take profit and stop loss, especially the stop loss setting is crucial! At any time, you must respect the market, don't gamble, think about going all out, and take a gamble. Even if you are right many times, as long as you have a lucky mentality once and don't set a stop loss, then you will be doomed! A wave of poverty!
Although the bottom of the stage may have appeared from the perspective of huge liquidation, we should still focus on defense. We are still in a state of shock and cannot guarantee whether there will be panic at night. From the current point of view, today's low is 24200. This position of 24000 support is the starting point of the 6.15 rise. If the market wants to strengthen later, it cannot fall below it and must close above it. From the current trend, it has rebounded to the highest of 26900 and is now around 26400, which is a good thing. This position can only be called the bottom of this short-term stage. The rebound in the future market will be greater than the continued plunge, so adding positions and holding positions are the main focus.
I personally think that the current position is definitely a good time to buy some of the spot. If the big cake spot falls below
25,000, then we just need to stop loss and exit. In the medium and long term, the price-performance ratio of Bitcoin 25,000 is already very high. You know, in the future there will be Bitcoin EFT applications, halving, Cancun upgrades at the end of the year, and a halt to interest rate hikes, and so on. So, don’t fall before dawn!
At present, the ground is full of bloody chips. Look at the picture below. This is the standard you should buy. If you pursue stability, choose ARB and OP. If you are more cautious, choose GMX, RDNT, MAGIC, etc. In the case of insufficient liquidity, funds will definitely focus on the leader first. Therefore, it is safer to choose ARB and OP. Relatively speaking, I still prefer ARB. After all, OP is unlocked every month, and there will be another batch of unlocking at the end of this month, while ARB will not usher in a large amount of unlocking until March next year. Therefore, if you don’t know what to buy, buying ARB now is simply too good! Buy spot with your eyes closed. The contract can choose 0.89 as a defense and stop loss when it breaks!
During the day, the market should fluctuate and move higher, so it is completely fine to intervene in the spot market during a pullback! The contract must be equipped with a stop loss. The volatility is too great. In the past hour, both long and short positions have been killed again. Therefore, we must respect the market and keep the principal. Only then can we have a chance to turn things around. If the principal is gone, then the next big bull market may have nothing to do with you!
Protect the principal, protect the principal, protect the principal. Opening an order must include a stop loss, which is one of the effective ways to protect the principal. Therefore, whenever you enter the market, you need to set a stop loss in advance!
There is nothing else to say. The market has fallen so much that there are bloody chips everywhere. Just pick up a few and you should be doing well by the end of the year!
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