The altcoin season is approaching, with funds gradually flowing from Bitcoin and mainstream coins into potential altcoins, but just before a big explosion, a secret harvesting operation targeting long contracts is quietly brewing. Will you be one of the cut long positions?
Why do market makers cut long positions before the altcoin season?
1. Excessive leverage, insufficient market liquidity
When Bitcoin is consolidating, funds flow into altcoin contracts, and the sentiment for going long is overwhelming. However, the market depth is limited, and even slight fluctuations can trigger a chain reaction of liquidations.
2. Overheating in long positions, most suitable for harvesting retail investors
Market makers first smash prices to clean up jittery long positions, preventing early entry of funds before a market surge, saving costs to later drive the main upward phase.
3. Historical cycles reappear, there must be a drop before the altcoin explosion
Before the altcoin bull markets of 2017 and 2021, there were fierce corrections, clearing leverage and floating positions is a common tactic.
How to identify 'cutting long positions' signals?
A surge in long contract positions, but spot prices haven't followed
Funding rates soar, the atmosphere for going long is extremely overheated
Market makers release slight bad news, and the market overreacts and crashes
Countermeasures: Avoid this 'scythe'
Maintain light positions and low leverage, avoid heavy positions betting on direction
Strict stop-loss, do not hold onto positions or gamble on market trends
Focus on Bitcoin trends, altcoins are often bait before mainstream coins stabilize
The altcoin bull market is an opportunity, but also a maze filled with traps. Smart investors do not enter during the climax but wait for the scythe to fall, riding the wave when the wind rises.
