Good evening to all friends, I wish everyone success.
General situation: The market is experiencing severe stagnation and corrective waves after Bitcoin lost about a quarter of its value since its record peak of around $126,000 last October.
· Current Bitcoin price: Currently trading around $89,614, after temporarily dropping below the $90,000 level.
· Main reason for the correction: Attributed to several factors including heightened global trade tensions, investors taking profits at the end of the year, and market concern over the global monetary policy remaining in a "cautious" stance.
· Impact of derivatives: Losses were exacerbated by the liquidation of highly leveraged positions, with the volume of liquidations in one wave of decline reaching $19 billion.
· Positive point: Nevertheless, data from U.S. Bitcoin ETF funds indicate continued net positive inflows weekly, showing that some institutional investors view dips as a buying opportunity.
· Alternative currencies (Altcoins): They are heavily affected by Bitcoin's decline and are subject to larger sell-offs and liquidation pressures, especially speculative coins.
✅ Key recommendations for traders now:
Based on current events, the following points can be followed:
1. Risk management first: The current situation is characterized by sharp volatility. Must:
· Reduce the size of highly leveraged positions.
· Always use stop-loss orders, and do not risk more than 1-3% of your capital on a single trade.
2. Monitor the critical Bitcoin range: The range between $87,000 and $92,000 is considered critical:
· Staying above it may support market stability.
· A clear downward break may open the door for further declines.
3. Choose currencies wisely: During corrections, projects with solid fundamentals and clear use cases tend to recover better than speculative tokens. Focus on quality, not quantity.
4. Take advantage of Binance tools: Use the advanced tools provided by the platform such as charts, stop-limit orders, and alerts to make informed decisions and protect your profits.
5. Long-term thinking (HODLing): If you are not monitoring the market moment by moment, the long-term holding strategy with periodic buying (DCA) during dips may be the most suitable for you, especially with continued institutional adoption.
