Temporary Halt in the Cascading Liquidations Across the Crypto Sphere!
Sidrah Fariq
Global Head of Retail Sales & Business Development | Showcasing Crypto & Tradfi Institutional Leaders on Crypto Options Unplugged Podcast - Deribit | ex Bitget
The Death Spiral of Crypto!!
It has been a crazy weekend in Crypto with Markets Dumping and immense amount of FUD around Solana main lending Platform Solend trying to liquidate their biggest whale to avoid cascading death spiral, the rumors around Three Arrows, Celsius and BlockFi still encircling. What has made the community and investors more anxious is the lack of communication from their institutions. They definitely need to do a better job if we want to build this space for the next generation.??
Watch here for more info - https://www.youtube.com/watch?v=PVxZ0J6cdM4
Despite the fear and Fud, Market witnessed a healthy relief rally with Bitcoin rebounding from a bottom of USD 17,450 all the way to USD 21,500. Such relief rallies are also called Dead Cat Bounce or Bull Traps so we need to very careful while trading these Green Candles.?
The idea is not to FOMO into these green candles specially when the volume traded is not healthy, and keep our position size small. As the BTC is about to bottom within this downward Market Structure with FED continue to be hawkish, it is a good idea to ladder into your favorite cryptocurrencies – however for me, I would wait a little longer for BTC to fall within the range of 12,000 to 14,000 to take my positions.?You can never call out the Bottom! But if you have faith and conviction – like me, these attractive levels will not be there for long.?
Not just me -?Binance has a lot of conviction too.?They went ahead of bough about 100K bitcoins – and may be that is reason market bounced off.??Mckinzee?thinks Metaverse will be a 5 Trillion Dollar opportunity while?Global BTC adoption might reach 10%?by 2030. So in the middle of all the Fear – there are people and institutions that think in the long run – Crypto and Blockchain is here to stay!
Always be careful when traversing such turbulent times – Keep your stop losses intact – It is extremely important to understand the concept of Leverage, Notional Size, Stop Loss, Breakeven Point for the trade. The volatility is here to stay for sometime till the Equity Market which has broken its weekly trend line does not give up the gains it enjoyed on the back of near 0 interest rates.?
Fear and Greed are your biggest Nemesis – Use them instead to your advantage -?Short when everyone is buying and Long when there is Blood of the floor.