As shown in the picture, this chain liquidation is the largest settlement in history. Although the decline of Bitcoin is acceptable, many small coins have dropped by more than 95% from their peak. Anyone who leveraged their positions basically has gone to zero. Those who were optimistic about the market and opened a few long positions are now all gone.
Those who are still alive and playing with mainstream coins are also stuck, and it's estimated that even if there's a rebound, they will leave the market. For a long time, no one will use leverage to operate small coins. Without leverage, it's hard to amplify the market. Therefore, the previous peak represents the highest point for various small coins in this round of bull market. There will be no main upward wave, but there might be a dead cat bounce as many people feel that the market has crashed and want to catch the bottom. There is still some enthusiasm for bottom-fishing, but that's all. A rebound is not a reversal. If there is a good rebound ahead, remember to exit.
I think there is a high possibility of a larger rebound during the ETF season. The approval of ETFs for SOL, XRP, and even Doge may attract some attention. However, it's very frustrating that the U.S. is shut down and hasn't reopened yet, and it may take another week or two. Additionally, the uncertainty surrounding Trump's new trade war is significant. Although there may be sudden positive or negative news, it's really hard to make money; avoid high leverage. If you do trade, make sure to set stop losses.
My personal strategy is that in the next two weeks, I will short 1x BTC and ETH at the highs to prepare for next year’s bear market. This plan is quite clear. At the same time, the short position can hedge my remaining SOL spot. If there is no rebound and the price continues to fall, I won’t incur losses because the profits from the short position will offset this part. However, if the price rises, I will sell SOL to turn losses into profits. Then, holding the short position into next year will yield significant gains; this is the best scenario.
The premise for this strategy to be effective is that next year will be a bear market, and I am quite certain of this. This is my strategy for hedging and finally turning losses into profits during the bear market. I hope this can help everyone; let's encourage each other.
