BTC's plunge is alarming! The truth behind the crash + market prediction + survival strategies, all explained in one article to avoid pitfalls!
Bitcoin suddenly plummeted, causing panic across the network? Don't let fear disrupt your rhythm! Stripping away the jargon, let's break down the essence of the drop in plain language. Subsequent responses and key points to avoid pitfalls will be clearly explained, leaving you as steady as a rock!
💥 4 major bearish signals piled up, the crash had been foreshadowed!
1. Interest rate cut expectations dashed, hot money dares not enter the market: The market anticipated that the Federal Reserve would cut rates to inject liquidity, but the probability of maintaining rates in January exceeded 75%, delaying the benefits of easing! Hot money is holding on to cash and observing, everyone is selling to hedge against risks, leading to a direct cooling of the market;
2. Technical breakdown triggers a sell-off chain reaction: BTC repeatedly stalled at the 92,000-94,000 mark and broke below the critical support of 88,000 last night! Automatic sell orders triggered by technical traders caused a rapid price drop, completely collapsing market sentiment;
3. Institutions withdraw funds and flee, the safety net is completely gone: Standard Chartered has lowered its BTC target price, and the Bitcoin ETF in the U.S. has seen net outflows for three consecutive days, with large funds retreating! Core buying power has diminished, and market confidence has collapsed, making the decline unstoppable;
4. Leverage liquidation triggers a deadly chain reaction: Previously, many added leverage to go long, but when prices fell, forced liquidations were triggered, further driving prices down in a vicious cycle that is hard to stop! In a single day, over 110,000 people faced liquidation with losses of 2.7 billion USD, a typical case of 'long squeeze' tragedy!
🎯 Focus on 2 key points going forward, respond calmly!
✅ Keep a close eye on central bank movements: Multiple central banks around the world are meeting within a week (especially the Bank of Japan), unexpected decisions could trigger volatility in the crypto space, do not let your guard down regarding news;
✅ Firmly defend the 88,000 mark: If it can quickly rebound and stabilize, it would be just a false alarm; if it cannot hold, the next test point will be 85,000, so prepare risk controls in advance!
⚠️ Lifesaving advice, remember to protect your principal!
The crypto market is specialized in curing greed and luck; trading relies on discipline, not luck! Don't enter the market with money you can't afford to lose, and avoid over-leveraging on market bets; during turbulent times, observe more and act less, strictly control risks, and fastening your seatbelt is the way to go!
Market fluctuations are normal; treat them rationally and don’t follow blindly. The above content is for reference only and does not constitute investment advice!
