Dude Crypto

What happened & What is next? 1. Lots of leverage had been building up both in equities as well as in crypto. Positioning for that big all time high break. 2. BTC’s Volatility was near cycle lows so a small push was needed for a big move to occur. This would have likely worked in either direction. 3. Trump/China Tariff Fud resurfaced. People remember April and a sharp sell off occurs. 4. Exchanges froze, market makers pulled liquidity, some alts went to literal 0. 5. Tokens depegged, including USDE. 6. Liquidations expected to be anywhere from $30B-$40B. 7. Total Market Valuation of $900B lost from top to bottom of the day. $500B lost in 10 minutes at some point. 8. Obviously there’s factors at play which we can not all see or know. I’m sure there have been players that pushed it much lower intentionally. That’s always the case. I just wanted to state the actual facts we know and how this happened in the first place. But even with all that, the move was massive. Not something many people expected at all. Which is usually when these moves can occur of course. What’s next? I personally slept through most of this carnage but that might have been for the better. Anyone with 2x+ leverage and no stop loss basically got wiped out on alts. These liquidation events where exchanges freeze up and coins depeg are often at or close to a bottom. This doesn’t mean it’s straight up from here of course. The bull case would be that Trump walks back his words yet again and we start the recovery back up. Just like April. If not, and uncertainty remains or the situation worsens, we could be due for at least a couple of weeks of sideways chop where alts try to make some higher low. Keep in mind, many of these coins went down -70% or more and have since bounced quite a bit. So there is a big area between where coins are now and the low of their wicks. I don’t think it makes sense for some of these alts to re-visit the wicks as some are at literally 0. But for coins that didn’t go as deep those wicks can potentially be good areas to watch. I’m personally going to watch for the .618 & .786 fib levels and see how those react if price were to get there. Especially the latter has done very well for BTC after these big spikes. If you’re down a lot, you’re not alone. Almost everyone has some net exposure to this market here, and has taken a big hit. Take a break, reassess and come back fresh when you’re ready. Trading with the idea to make it all back generally only digs you into a deeper hole. For everyone that is fine, I would recommend to keep an eye on the market and not completely detach from it during times like these. These phases in the market do bring opportunities as emotions are high and charts are all over the place. So even if you don’t intent on doing any trades, monitoring the market can be very beneficial and educational. Wishing you all the best and enjoy your weekend as well as you can 🫡