$2.1Billion in Liquidations - Bitcoin Short Term Price Target - Bearish Patterns Forming
2.1 billion liquidated

$2.1Billion in Liquidations - Bitcoin Short Term Price Target - Bearish Patterns Forming

By Keeef | CryptoFactor | 6 Dec 2021


The State of Bitcoin

Following the large sell-off and collapse in Bitcoin ($BTC) price late Friday evening, instigated by one crypto whale (someone holding a large amount of a bitcoin) selling more than 4000 BTC in one short term moment.  This comes amongst fears of upcoming debt default for Evergrand in the traditional markets as more FUD around Omicron Variant and rising inflation has created uncertainty.  This fear has undoubtedly crept into the crypto markets.  Visible clearly on the weekly time frame, an ascending wedge looks to be forming which is typically a bearish indicator, however, this may not always be the case, although more often than not this has been the case on average.   

As it stands, I think that we are in for bearish trends in the short term, however long term I think we are still on from a parabolic increase in the longer term though perhaps later than everyone would like, perhaps as late as Q2 of 2022.  

Words of Reassurance

If you lost out over the weekend, I feel your pain, and so I would like to offer you some mantra's to repeat to yourself as you rock back and forth crying yourself to sleep at night:

  • If you are not homeless and can still afford to eat - You're better off than some! Be grateful! (Never risk more than you can afford)
  • $2.1Billion of long leveraged positions were liquidated on Friday 3rd December - If you didn't use leverage, you still hold a great asset! 
  • This is totally normal -  Large 22% drops like this happen on average 3-4 times per market cycle.  
  • Now that all that leverage is out of the market and reset, there's more likelihood of going up from here!
  • Here's another quality buying opportunity!

"Cardowno" (get it?)

One of my favourite Alt-Coins (cryptocurrencies other than Bitcoin) is Cardano ($ADA), and like many other holders of this token, I am long-suffering and tempted to grow frustrated in the short term.  I am, however, glad that I have bought in to project when I did and since I did my DD (due diligence) before investing as it led me to keep the long term potential in mind.  There are a lot more exciting projects, including DEXs (Decentralised Exchanges) and NFTs (Non-Fungible Tokens) etc coming down the line and a bustling ecosystem being built on Cardano only means good things for future prices.  

Being long term on a project and being comfortable in what you put your hard-earned money into makes you less like to be shaken out.  So do remember to never FOMO into projects just because you see a tweet or indeed a blog post about great their potential is (just like what I've written above).  You should always do your own research to avoid getting burnt and to educate yourself on what it is you are actually buying.  

My plan now is to continue to accumulate and make the most of these prices with ADA on sale at a sub $1.40 price point, because the facts for me remain unchanged: 

  • We are in a bull market
  • The market cycle is lengthening
  • We are getting in during the infancy of Blockchain projects and adoption is evident and progressive
  • We are still in for a blow-off top where the big money will be made. 

Thanks for reading my update, and any exciting projects, I plan to share with you any low cap picks I invest in with buy alert blogs right here on Publish0x and on Reddit.  I will be working on a Crypto Glossary of Definitions for newbies over the next for days and if you'd like to see that, make sure to follow me.  None of the above is financial advice, you should always do your due diligence.  

 

 

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Keeef
Keeef

Cryptocurrency Journalist, Enthusiast and Commentator


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