$BTC The waterfall is here, don’t be the one swimming naked!
Yesterday was really nerve-wracking! Bitcoin crashed through the critical support level of 102,000 USD, and the entire crypto market followed with a 'bloodbath', with 460 million USD liquidated in one day!
Why did it crash? Triple critical hit!
The Middle East powder keg has exploded: Israel bombed Iranian nuclear facilities, and the whole world is panicking. Do you think Bitcoin is 'digital gold' that can hedge against risks? Wrong! The big players are instead frantically converting coins to stablecoins to escape, and the price of stablecoins in the Middle East has surged by 20%!
Leverage got out of hand: Before the crash, the market was too quiet, and a bunch of people took on high leverage of 25 times! They wanted to gamble. As a result, when the price just fell below 106,000, these leverages were like a domino effect getting liquidated in succession, bringing others down with them, a trampling tragedy!
The technical outlook is grim: Two key moving averages on the chart have crossed downwards, and the price can't break through the resistance level. Those automated trading bots see the wrong signals and start selling!
The 'smart money' during the crash:
Retail investors are scared and cutting losses, but whales like MicroStrategy are secretly bottom-fishing! They are betting on the big trend: Bitcoin is still small compared to gold, and with the Fed possibly lowering interest rates and global debt issues, its value as a 'digital hard currency' remains in the long run.
Altcoins reveal their true colors:
Ethereum is still relatively resilient, after all, the gas fees have decreased after the upgrade, and DeFi is warming up again. But those meme coins relying on hype have suffered, with market values evaporating by 30%! When the tide goes out, it’s clear who’s swimming naked.
What to do next?
Now keep a close watch on the 102,000 USD level:
Held on, slowly recovering;
If it can't hold, it may drop to 90,000;
Middle East situation easing + funds returning, there's a 40% chance of bouncing back to 110,000.
Survival guide:
Leverage is a knife! This time, over 60% of those liquidated used more than 10 times leverage! My sincere suggestion: don’t exceed 3 times leverage, and set stop-loss and hedging properly.
Buy some 'insurance'! Buying put options on Bitcoin now is equivalent to a low insurance cost of 2-3% of your holdings, which can be lifesaving during a crash.
Keep an eye on the big players! If large on-chain transfers suddenly surge, for example, over 100,000 BTC in a day, it could be a signal of a major bottom!
Every crash is a major test, testing perception and mindset. Don’t be scared by panic, and don’t be ignorant of risks!
$BTC
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