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RE: Crypto Space BLEEDING OUT? BUCKLE UP - recent correction AIN'T OVER just yet [my personal expectations]

in Project HOPE3 years ago

What happened a few days ago (price drop) was a simple culmination of a trend where a large number of traders opened long positions. Anyone who has watched this knows that for a long time the so-called funding rates (a mechanism enabling perpetual futures contracts) have been in the plight of shorters. Open long positions thus paid significantly for short positions.
And basically, as always in such a situation, came the long squeeze (understand it as price drop). The drop in price began to liquidate longs (those with the largest leverage at first), which are then sold at the market price during liquidation, which again creates pressure on sales, which eliminates other longs with lower leverage.
So here we simply have a situation where some of the traders turned into a huge greed (see Fear & Greed index and it previous numbers!) and logically this correction subsequently fell on them.
Fundamentally nothing changes at all. The interest in BTC is huge from all sides (banks, institutions, PayPal, ...) and the network has been showing perfect numbers practically all year round. Prediction and technical analysis are priceless, we are going to the unexplored territory over 20,000 USD. According to fundamental data, there is no reason to panic or fear. The development of ecosystems, advancing adoption and spreading awareness will lead to gradual growth.
Buying BTC now? Only as part of a dollar-cost averaging (DCA) strategy. Alternatively, at levels around 13k, where the 20-week moving average is, which served as a reflection of the bull run in 2017.
Selling BTC now? I wouldn't recommend it either. The chances that you will panic with repurchase at prices above 20k are higher than that the price will go down to your purchase levels.


20 week MA as a support in the last bull market should serve as a support now as well

 3 years ago 

Thank you for sharing your thoughts with me @ritxi

I appreciate it a lot.

You're welcome :-)

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