Yesterday, Bitcoin plunged to $86104 in a bearish candle, with over 150,000 people liquidated across the network, and my community erupted. Some lamented 'the principal halved,' while others secretly bought the dip. But to be honest, this kind of volatility for veteran investors is like catching a cold and fever; it's unpleasant, yet it's the market's immune system at work.
1. The Truth Behind the Crash: The 'Chain Reaction' of Leverage Liquidation
This decline appears to be driven by macroeconomic pressures (U.S. stocks falling, oil prices rising in a risk-off sentiment), but in reality, it's the domino effect of high-leverage positions collapsing. The worst off are those who chased the surge with over 20 times leverage; if Bitcoin fluctuates by just 5%, their accounts are wiped out.
However, unlike in the past, this time the scale of liquidation is relatively mild (about $750 million), indicating that the market is naturally clearing the bubble rather than experiencing panic selling. As XS.com analyst Samer Hasn said: 'The current decline feels more like a healthy adjustment, building momentum for the next wave of market movement.'
2. My account has shrunk, but the strategy hasn't collapsed
Yesterday my position retraced 3%, mainly due to Ethereum breaking below $2,900. But two weeks ago, I had already reduced my leverage to below 3 times, controlling my position at 15% of total funds, so the drop hurts but isn't fatal.
Key operations are three points:
Stop-loss as hard as iron: set a stop-loss line for Bitcoin at $85,000 and for Ethereum at $2,750, exit immediately on trigger without hesitation;
Position layering: 50% in mainstream coins (BTC/ETH) to withstand volatility, 30% in stablecoins (USDT/USDC) for opportunities, 20% in cash to respond to extreme market conditions;
Reject the 'bottom-fishing addiction': many people go all in when the market drops, ending up stuck halfway up the hill. I only added 0.5 of my position after Bitcoin fell below $86,000 in batches.
3. Opportunities are hidden in pessimism: should we be afraid or greedy now?
Historical data shows that the 24 hours after a crash is the best window for picking up bargains. For example, after Bitcoin's flash crash of 20% this October, it rebounded over 30% within a week. But bottom-fishing needs to be strategic:
Cautious approach: wait for Bitcoin to break through the $88,500 resistance level before following up;
Aggressive approach: place limit orders in the $80,000-$82,000 range (add a position every 5% drop);
Altcoin players: beware of coins that fall but do not rise, prioritize those with actual ecosystems like Layer 2 and RWA concepts.
Don't forget that on-chain data is more real than price. Yesterday, a whale wallet increased its holdings by 12,000 Bitcoins, indicating that smart money is secretly accumulating.
Conclusion: The market is always teaching two types of people
The greedy leverager and the panic seller. If you didn't get liquidated or miss out yesterday, congratulations, your discipline has surpassed 90% of people.
Follow me@币圈罗盘 , next time I'll take you through the underlying logic of contract strategies, helping you avoid detours and earn real money!#巨鲸动向 $BTC $ETH
