On November 3rd, I stared at the blood-red liquidation data on the screen, my coffee had gone cold in my hand.
$1.279 billion evaporated, 340,000 people were liquidated, of which 80% were retail investors—many of whom were still showing off their profits the day before, only to see their accounts go to zero overnight.
This crash had long been foreseen: the Balancer protocol was hacked for $100 million, ETF funds continued to flow out, and the Federal Reserve hawked that 'a rate cut in December is not guaranteed'... But those in the midst of the celebration always choose to ignore the thunder.
As an old hand who has experienced three rounds of bull and bear markets, I have summarized five bloody laws. No complex indicators, just speaking plainly.
1. Leverage is poison; too much will lead to death.
Among those who were liquidated this time, 62% used over 5x leverage, and 38% bet their entire funds on a single coin.
A player turned $500,000 into $3 million at the beginning of the year, but on the day of the crash, he used 10x leverage to buy the dip, and within an hour, his account was wiped out.
My principle:
Beginners should absolutely avoid leverage! Experienced traders can use at most 2x, and it must be spare money (the kind that losing it won't affect your life).
Leverage amplifies gains like heaven, but during a crash, it's an elevator plummeting to hell—with no chance to hit the stop button.
2. The stop-loss line is a seatbelt; it's too late to fasten it after a crash.
Many people think 'it will rebound soon' when losing 10%, but panic and cut losses after losing 50%.
Look at this: Bitcoin fell from $110,000 to below $106,000; a 4% fluctuation wiped out those who were fully leveraged.
Beginner's operation:
Automatically stop-loss at an 8% drop, and raise the stop-loss line to above the cost price when it rises by 10%.
Don't believe that 'holding positions can recover losses.' After Balancer was hacked, related coins halved in value in one day; those who stubbornly held became fuel.
3. There's a trap in bustling places; don't squeeze in to become the 'bag holder.'
Before the crash, social media was filled with celebrations of 'Ethereum ETF will ignite a bull market.' What happened? In October, ETF inflows were only $600 million, down 86% from August.
Warning signal:
When the search volume for a certain coin surges threefold and 80% of the community shouts to buy, it's often the time to retreat.
Institutions have already positioned: CME Bitcoin short positions increased by 35% in the week before the crash; smart money moves faster than retail investors.
4. Adding positions is like firefighting; first, see what is burning.
Some people keep buying as prices drop, resulting in small coins plummeting 90% and going to zero.
Respond according to the situation:
Bitcoin and Ethereum have dropped over 30%; consider adding positions in two batches (don't go all-in at once).
Small coins (especially fork projects) should have stop-losses set at a 20% drop; they can collapse instantly like the Balancer fork pool.
5. Two moving averages determine the trend; even beginners can avoid major drops.
There's no need to study the entire K-line book; just focus on MA5 (5-day moving average) and MA10 (10-day moving average):
MA5 above MA10 → short-term trend is upward, can hold.
MA5 breaking below MA10 → signal to reduce positions! In this crash, Ethereum accelerated its decline after breaking below MA10.
Written at the end
This crash reminds me of an old saying: 'The money made in a bull market is what you still have in a bear market.'
Cryptocurrency won't disappear, but habits of high leverage, no stop-loss, and chasing trends will make people vanish.
Remember, the market is never short of opportunities; it's about who survives to the next bull market.
Preserving capital is more important than getting rich quickly. Follow Ake for more firsthand news and precise insights in the crypto space; education is your greatest wealth!#加密市场反弹 #加密市场观察 $ETH
