Bitcoin fell by -10% from its historical high, and more than $800 million of liquidations have already formed on the market
The domino effect of accumulated long positions with leverage shows a living example of why it is better to trade without leverage at the current stage of the market.
Alts always fall harder because they have much less liquidity.
For a normal correction, Bitcoin needs to fall by at least another -20-25% from the current ones. For now, this is just a small pullback within the trend.
Bitcoin is currently trading right along the very important short-term moving average MA20d
We talked about the work of this indicator in the article MA20d is your friend in a bull market Be sure to study it!
If what is happening now is simply a rollback within the trend, then we are already at the bottom and the growth trend will soon continue.
But the main support for the price now is the moving MA20d.
If it breaks through, a full-fledged correction will begin to at least $55,000.
What to do now?
1. If you do not have short-term positions at all, then now it makes sense to open them with stops.
2. If you have free cash of up to 30% of the portfolio, which you hold to buy out a full-fledged correction, then it’s too early to buy now.
3. If you have more than 30% of the cash on hand, then you can buy something that is heavily oversold.
But larger timeframes are still heavily overbought.
The fear and greed indicator still shows extreme greed.
But personally, we think that now is not the start of a full-fledged correction, but the end of the current rollback.
In any case, a strong pullback will sooner or later appear in the market and you need to be prepared for this.
Whether the correction will turn into a full-fledged one or whether we are already at the bottom is unknown.
But in any case, after a real correction, the market will continue to reach new heights.
This means that the most important thing is to hold your positions and not sell them. Of course, this only applies to the spot market.
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