On the early morning of August 28th, the price of Bitcoin continued to fluctuate downward, falling from $62,000 to $58,000 in just 1 hour, severely disappointing the bulls. At the time of writing, the price of Bitcoin has rebounded slightly to $58,982.
The recent crash not only wiped out last week's gains, but also brought heavy pressure to other currencies in the market.
Ethereum is the altcoin that has been hit the hardest, with a value loss of up to 10% in the past 24 hours, dropping to a low of $2,392. Unlike Bitcoin, Ethereum has been the focus of the market's attention in the past week, but not in a positive way. Vitalik Buterin's pessimistic comments on DeFi, as well as the transfer of $94 million worth of Ethereum to the Ethereum Foundation, have contributed to this. The world's leading smart contract network has recently seen controversy over Layer 2 strategies, resulting in fragmented liquidity and a reduced store of value for Ethereum, leading to a disappearance of on-chain activity.
In the past 24 hours, a total of 87,408 people have been liquidated, with a total liquidation amount of $318 million.
The largest single liquidation occurred in Binance's ETHBTC, with a value of $12.6725 million.
It is possible to bottom-feed during the market crash, whether it is Bitcoin, Ethereum, or some high-quality altcoins.
Since the bottoming out on August 5th, the market gradually started to rise and is currently approaching some resistance levels. When approaching these resistance levels, minor retracements are normal. After all, those who don't believe in a big rise next and don't understand the bull-bear trend and think that there will be a big drop next will choose to sell off.
When approaching the resistance levels, block orders will also wait temporarily. Because block orders need to wait at this level for those who don't understand the market and sell off here to release their chips, and then take control of the chips themselves. So, don't just assume that there will be a big drop again just because of the small retracement in these two days. I have already analyzed the overall market trend and the direction of the weekly chart in the past few days.
The long-term cycle restricts the short-term cycle. Since the long-term cycle has already determined the current and future trends, all we need to do is to wait patiently. The short-term trend of the short-term cycle is just superficial, and the block orders have the ability to manipulate the short-term trend. Their purpose is to influence the judgment of retail investors.
After experiencing a turbulent market for nearly half a year, the previous major correction, and the recent rebound, it is obvious that retail investors have formed a habitual way of thinking. Now in the market, I believe the most common phrase you hear is: the rebound will end and continue to fall, and there will be a big drop next. If you don't run after the rebound, you will continue to suffer. But in fact, the trend of the long-term cycle has been basically determined. If you are influenced by market sentiment and operate randomly, you will only lose more miserably. To do well in short-term trading is actually very simple, just one sentence: buy during major declines and sell during major rallies. This method can basically achieve stable profits.
