Bitcoin rebounds after plummeting to 100,000: Is it a buying opportunity or the calm before the storm?​

Bitcoin recently dropped below 100,000, hitting a low of 98,000. Although it quickly rose back above 100,000, the situation is not that simple. It's a bit strange that despite significant global events, such as tensions in the Middle East and fluctuations in oil prices, Bitcoin and other risk assets seem unfazed, with little price reaction. This indicates that the market may not have fully digested these risks yet, and if conditions worsen, there could suddenly be a larger downturn.

This drop was mainly due to excessive leverage previously; a lot of people borrowed money to trade cryptocurrencies, and when the price fell, they were forced to liquidate their positions, causing a market cascade. Interestingly, even though prices have declined significantly, not many have panicked and sold off, indicating that most holders are still holding firm and haven't been scared away.

The issue now is that if larger black swan events occur, such as escalating international conflicts or surging oil prices, Bitcoin might experience another drop. Despite the current rebound, the risk remains. For retail investors, it's best not to rush into buying the dip; instead, observe the international situation and the market's genuine reactions. If oil prices suddenly spike or if there are significant on-chain transfers and increased inflows to exchanges, it could signal another decline.

In summary, this rebound in Bitcoin may not necessarily mean stability; greater volatility could still be ahead. Everyone should be cautious and not be misled by short-term gains. The calmer the market, the more one should guard against sudden changes.

#加密市场回调 I will continue to strategize with smart trades; instead of fumbling through and missing the best entry and exit points leading to losses, it’s better to follow my lead directly.