Last night the rain in Shenzhen had just stopped, and the circle was shaken awake by this wave of 'blood wash'.
BTC broke through the key level of $85,000, once plunging to around $83,240. Looking at the data, over 1 billion dollars were liquidated across the network in the past 24 hours, with the vast majority being long positions. This scale of 'de-leveraging' has essentially cleaned out the recently blind chase of hot money.
Some thoughts for today:
The game of risk assets: It's quite interesting, recently gold and silver have also been experiencing significant fluctuations at high levels. Originally, everyone thought BTC was 'digital gold', but last night's trend resembled a 'leveraged enhanced version' of US tech stocks. As the earnings expectations for US tech stocks weakened, coupled with the risk of a government shutdown coming from Washington, risk-averse funds have clearly flowed back into physical gold rather than the crypto market.
ETH's lifeline: Ethereum has fallen below $2,900, returning to the level of December last year. The ETH/BTC exchange rate continues to weaken, which is a signal for someone like me who runs automated scripts—this is not the time to bottom fish altcoins; liquidity is still contracting.
ETF and institutional actions: Despite the poor market, Nasdaq launched three new crypto strategy ETFs (SSS, XXX, EEE) today. While institutions are launching new products, the market is falling; this kind of 'divergence' often signifies a long-term bottoming.
Order suggestion (pure communication):
BTC: Short-term support looks at $82,000 - $83,000. If the US stock market stabilizes at the opening tonight, there may be a wave of oversold rebound.
Operational strategy: In this kind of market, my personal script has switched to 'defensive mode'. Do not panic and go all in to average down. Wait until the 4-hour K-line no longer makes new lows before considering.
Many people ask me: Is this bull market still on?
I can only say that compared to a year ago, the current fundamentals (regulation, ETF, payment integration) are significantly better. Such levels of pullback are just 'routine' in Web3. In this circle, position management is always more important than market prediction.
Everyone, are you planning to sleep with no positions tonight, or place orders in batches? Let's discuss in the comments and see who hasn't exited yet.