It's crazy, it's crazy, it's completely insane!
In just one day, the crypto market has entered extreme greed. Why did ETH soar by 30% and continue to rise? Who is chasing the highs and increasing their positions?
In fact, no one is chasing the highs! It's 10 billion short fuel burning wildly, causing a chain of massive liquidations! These people sold short at 3000, and now they should all be liquidated!
As shown in the picture, we reported this event in late March, but I wrote the numbers wrong at that time. It was billions of dollars chasing short ETH, and there was a possibility of very strong short squeezes. I thought the shorts would explode in April, but it turned out to happen in May.
However, everyone should pay attention; around 2425 for ETH is its 0.382 golden ratio line, which presents some resistance here. The short squeeze might see some stagnation around this level. For those who have positions in altcoins, it may be wise to take profits and see if there’s a retracement before making further decisions.
I believe that once the altcoin season starts, it won't end in just one day. However, this time it has truly risen too much, and the risks of chasing the highs are increasing, with the risk-reward ratio decreasing. Therefore, waiting for a retracement before positioning is more rational. It would be more reasonable for Pepe to retrace to the neckline around 0.105 before making another surge or rebound.
Yesterday, we suggested entering Pepe at 0.088. I said I was willing to use 20% of my total position to catch this tail end, and I didn't expect this tail to be so big and fat; it all came to me in one day, leaving me truly stuffed. If PEPE retraces, I will use 30% of the profits I made last night to buy in again, pulling out my principal and rolling the profits back in. This is the risk exposure I am willing to accept. If you seek stability, you might not participate in this tail-riding trend, or if you're more aggressive, you could use a larger position. This is a personal choice based on how much risk you can accept.
