it was all a bear trap?
Now all of a sudden everyone are panicked they got trapped and are curious behind why this happened which was kinda unpredictable but I had told the solution yesterday to not get hit by uncertain situation but I also messed up badly.
Nevermind, it's time to dive deeper before the dip gets deeper and see what could happen next in crypto.
Reason behind This Nuke in Crypto
From last couple of days and weeks (60 days) market was just going sideways with no volume and volatility was at it's lowest which is something we discussed yesterday in this post.
This is actually the first reason "less buyers, more sellers and selling pressure".
Bitcoin went from $25k to $31.6k after BlackRock ETF news came out and ever since then it didn't took any healthy correction which is now fully retraced at the time when there are headlines over the internet saying "SEC might delay ETFs to 2024 March".
But...
SpaceX Sold All Bitcoins Holding
It's reportedly said that SpaceX has sold $373 Million worth of Bitcoin in an article by WSJ and other than that there's no confirmation yet.
Even if Elon Musk have decided to sell those bitcoins couldn't trigger this kinda selloff.
Instead this selling is kinda bullish when institutions are hungry to buy lower.
$1.05 Billion Liquidations: Highest after FTX collapse
In the past 24 hours , 175,557 traders were liquidated , the total liquidations comes in at $1.05 billion The largest single liquidation order happened on Binance - ETHBUSD value $55.92M ~ source
This is the highest liquidations recorded after FTX collapse in a single day and it's like really hard to believe that much traders got liquidated.
It was all in the Charts
This was the plan I convinced myself to follow instead of getting chopped out in those sideways range I said either I'll buy a support or breakout there's no in-between.
And after 24 hours:
I literally had no idea this will get escalated the next day after that even tho I've mentioned the move will be quicker when volatility will return and it's gonna leave many into sidelines after liquidating and the whole thing happened like that.
Volatility is Back but What's Next?
The amount of people that got liquidated is insane and mostly people have panicked sold out already and started to talk about going to 2022 lows like $16.6k.
This is kind of Fear scenario considered to be bottom.. bankers have actually found cheap bitcoins what exactly they wanted retail investors to be liquidity and now they're tapped in
In my opinion now buyers will comeback and it will gradually moves to upward which is the trend of this cycle.
Wrapping Up...
In the end, there's a lot of things going on the sides that need to be tapped in paying attention and to be confirm and fully sure I'll wait for some days especially this weekend to over and than decide the market.
Altcoins are recovering and nature aka market is healing but it's time to observe more.
I Would love to know your thoughts on the market in comment.
