MAJOR TREND REVERSAL
We are currently involved in the FTX disaster, and since it occurred, we haven't responded. We have essentially remained in the lower area, and the short-term bearish technical indicator is known as a bear flag. We witnessed the Terra Luna's demise, and the price of Bitcoin fell by 45%. Then came the FTX collapse, which caused prices to plunge by 23%. Therefore, even if the price dropped by a smaller amount, it might be argued that FTX was a larger deal for cryptocurrencies than the Terra Luna crash.
contrasting the demise of FTX and its effects on the sector with that of Lehman Brothers in 2008. In terms of dread, I find it to be extremely interesting. You should be aware that you are trading human emotions when you trade charts. When someone buys, they are avaricious and believe the price will rise. They worry that the price will fall when something sells. Because it tends to repeat itself time and time again, you may examine several charts and historical charts to determine what is happening.
In a bear market, you often see rallies that are referred to as "rip-your-off rallies," when there are these massive sideways swings that lead people to believe the low has been reached. The biggest Bitcoin rise occurred in September of last year, if you look at historical data. I believe there will be a recession in the US, and prices and stock prices will decline. This, in my opinion, will be the main factor behind Bitcoin's temporary drop. There will be more transparency once there are certain rules in place. For all retail investors, regulation is a demand for openness, and once we achieve that, we will start luring in huge bucks.
If there is one thing I came to realize, the large sum of money put in FTX makes it clear. The majority of the big money is currently sitting idle. Since hedge funds have a fiduciary duty to protect investors' money and there is currently little clarity, I don't see any trend in the industry to invest in cryptocurrencies just yet.