BTC plummets unexpectedly! A breakdown of the truth behind the human talk, the subsequent trend + warning advice all explained at once!
Bitcoin suddenly took a dive, and the whole network panicked? Don't let the market throw you off rhythm! Strip away the jargon and explain the reasons for the plunge in plain language, how to respond afterwards, and which pitfalls to avoid, all in one article to understand and not step on landmines!
💥 4 bad news coming together, the plunge had long been signaled!
1. Interest rate cut expectations cool down: The market hoped the Federal Reserve would create a "money shortage", but the probability of maintaining the interest rate in January exceeded 75%, delaying the rate cut = hot money dares not enter the market, everyone sells coins to wait and see, the market cools down first;
2. Technical breakdown, mentality collapsed: BTC got stuck repeatedly at the 92,000-94,000 mark, and last night it directly broke the key support level of 88,000, triggering automatic sell orders from technical traders, leading to a chain sell-off that crushed the market;
3. Institutions "got scared" and withdrew funds: Standard Chartered Bank lowered its BTC target price, and the U.S. Bitcoin ETF experienced a net outflow for three consecutive days, with large funds that stabilized the market retreating, leaving the market without a "stabilizing pill";
4. Leverage liquidations triggered a chain reaction (most deadly): Many people had leveraged long positions earlier, and when prices dropped, forced liquidations were triggered, selling pressure further drove down prices, creating a vicious cycle! Over 110,000 people liquidated in a single day, losing 2.7 billion dollars, a typical "long squeeze"!
🎯 Looking ahead, focus on two points, stay calm!
✅ Watch the central bank's moves: Multiple central banks around the world are meeting within a week (focus on the Bank of Japan), any unexpected decisions could shake the crypto market again, keep a close eye on news;
✅ See if BTC can "stand back up": Key to watch is the 88,000 dollar mark, if it can quickly rebound and stabilize, it’s just a false alarm; if it can't stabilize, the next test level will be around 85,000!
⚠️ Final advice, remember not to lose!
This market specializes in treating various greed and luck, no matter how lively the story, operations depend on discipline! Don't enter the market with money you can't afford to lose, and definitely don't heavily bet on the market; during strong winds and heavy rains, it's better to watch more and act less, manage risk well, and buckle your seatbelt is the way to go!
The market is highly volatile, treat it rationally and don't blindly follow; the above content is for reference only and does not constitute any investment advice!
