The crypto market is facing a challenging start to December, with a major sell-off wiping out hundreds of millions in leveraged positions. Bitcoin ($BTC) has dropped below $87,000 and Ethereum ($ETH) under $2,900. This is a risk-off environmentâbut in crypto, panic equals opportunity.
âDon't panic sell. Here is your current guide to trading this crash:
â1. The Crash Trigger: Liquidation Cascade
âWhat Happened? The recent drop was amplified by a liquidation cascade. When $BTC briefly broke the $89,500 support, it triggered automatic closing of leveraged 'Long' positions, forcing the price lower quickly.
âThe Positive Spin: This event "cleans out" the market's excessive leverage, which is necessary for a healthier long-term rally.
â2. Critical Support Levels to Watch
âForget last week's resistance; we are now looking for the floor.
â$BTC Key Level: The next major defense zone for Bitcoin is at $85,500. If this level fails to hold, we could see a quick retest of $82,000 (a level last seen in early April). Savvy traders are setting buy orders in this $82kâ$85k range.
âAction: If you are a long-term investor, this is your DCA (Dollar-Cost Average) zone.
â$ETH Key Level: Ethereum needs to hold $2,800. A break here suggests a test of the lower $2,700s. $ETH fundamentals remain strong, making these dips attractive for long-term holders.
â3. Altcoins - Extreme Volatility
âAltcoins like $SOL , $BNB , and $ADA are mirroring the decline, suffering 5â8% drops in the last 24 hours.
âOpportunity: This is the perfect time to identify quality altcoins trading at steep discounts. Look for altcoins that have strong partnerships or upcoming developments (like $ADA's Basho upgrades) but are now undervalued due to market panic.
ââ ïž Trader's Warning: Use Stop-Loss!
âVolatility is extremely high. Do NOT enter a trade without a clearly defined Stop-Loss order. Protect your capital first.
âAre you buying this dip, or waiting for $BTC to hit $80,000? Let's discuss!
â#Write2Earn #BuyTheDip #BTCCrash #CryptoMarket #TradingTips
