Bearish Crowd is over selling than Spot Nd at one point they have to pay fees to stable the price. This means price is going down. Now, how much price it goes down depends on the negative value.
Negative does not mean price goes down but there is more selling pressure. However, price moves up when Spot and longs brings volume!!!
Are you sure you understand how long and short positions work on Binance? Don't just blindly open positions based on price movements! Let's break it down:
Long Position: You buy at $2, and the price doubles to $4. With 100 USDT and 10x leverage, your profit would be 1000 USDT (in addition to your original 100 USDT margin).
Short Position: You sell at $4, and the price drops to $2. But here's the catch: your profit would be 500 USDT, not 1000 USDT. Why the difference?
If you're not aware of this asymmetry, you might be taking on more risk than you think. Make sure you understand the mechanics of long and short positions before trading with leverage!
IMO, the market hasn't hit rock bottom yet, so buying the dip might be premature. The recent 110k BTC ATH is likely fueled by hype that needs to be corrected, and with ongoing war tensions unresolved, more downturns are likely.
If you're determined to trade for a living, consider these precautions: - Use only 10% of your portfolio - Keep leverage below 5x
This strategy gives you room to average up and exit if the market recovers."
Look, the situation can be exploited by whales easily and quickly than you think.
If any Altcoin is raising without BTC or ETH or not project news, it is likely a FAKEOUT!!
Ideally, would expect 10% up from here on $ETH . This was the pattern or sentiment you call it!!
But with given war situation, this can be pulled down further. Even though set up looks bullish, would not open Long Position on ETH as long-term investment.
But I would not go for Long position too aggressively!!! Situation favours Short Position but if you want to buy the dip either use Spot or use low leverage!!
Do you even know something called Funding Rate in perp contracts???
If not, and opening Short/Long contract blindly leads you to disappointment, first please learn and check that properly!!!
Doing so, you not only save lots hefty penalties but also play according to the trend!!
Funding rate defines your position significantly!!
Thank Me Later or Follow me to know Between Lines what others won't even know or tell you!!
For example, I Shorted $SPK with 100 20x and I was getting profit about 60 usdc but nearing Funding Rate of -1.9%. If I hold the trade, had to pay 40 usdc as a fee.
Now tell me what would you do??? Of course, exit is matured solution isn't it!!!
Congestion (price hovering around a level, hitting it often in short time) --> for swing traders
Recurrence (price returning to a level from different trends/market phases) --> for long-term investors
Example: Analyzing $AAVE , I see $270 as support and $295 as resistance (congestion level for swing traders).
But for long-term investors, support might be 50-80 (recurrence level). And let's be real, if you're holding long-term shorts, this asset is OVERBOUGHT and could drop 50% easily!
Understand who you're following and what kind of trade you're in! 🤓 Happy to share knowledge and real signals based on data, not hype!
$ETH data started showing early bearish signals. Candles are struggling to close above MA 7, Volume is decreasing(Sideways), recent from Trump and Israel....
Next couple of days are crucial which correct or reverse the trend!! if it doesn't improve in 2 days and not closing with clean bullish candles, time to move away from high leverage futures and stick DCA or keep tight SL around 2250 if you are long or tight SL around 2900 if you are shorting.
personally prefer watching market closely than aggressive trading!!!
Look you can see another bullish fake out but doesn't mean eth is bullish. you have to wait or more confirmations