I experienced a liquidation... Just a few months back, I swore off leverage trading, but yesterday evening, my fingers started to itch. As most of you have likely observed, we recently witnessed a substantial dump. BTC plummeted from $28,500 to as low as $25,100 in a matter of hours, marking a $3,400 nosedive for the virtual currency.
On a weekly basis, the situation appears even direr. BTC had comfortably traded in the $29,000 to $29,500 range for a considerable period. No one could predict the severity of this crash, and no one was prepared for its aggressive impact. It's reminiscent of the vibes we felt in 2020.
I recall a few weeks ago when @chorock predicted a correction for HIVE, potentially as low as $0.28, after a brief touch at $0.42. Back then, I didn't give his words much credit. I suppose I was unreasonably bullish, but the market dances to its own tune, not ours.
Rumors abound that the current crash was triggered by SpaceX offloading its BTC holdings. However, as far as I know, SpaceX doesn't own any BTC. Tesla, on the other hand, does hold BTC, and no recent announcement has indicated any large-scale dumping. In any case, my opening statement declared that I faced a liquidation, so let me detail what transpired.
When I witnessed BTC plunging from nearly $29,000 to as low as $27,700, I interpreted it as the anticipated shakeout before an aggressive push past $30,000. Driven by this assumption, I took a 10X long position on BTC. I set my liquidation point at $25,400, a level that seemed impossibly distant.
Who could have predicted a nosedive down to $25,000? Certainly not me... Yet, a few hours after entering my long position, upon checking my Binance account at home, shock coursed through me as I realized I had been liquidated. $100 of my hard-earned money had vanished into thin air.
What a foolish move on my part. Those $100 could have filled up my car's gas tank with diesel, but instead, I gambled them away on Binance futures. Perhaps CZ owes me a tank of diesel now, or maybe not. Frankly, I was almost certain I would win this bet, but life had other plans.
Interestingly, news broke right after the significant dump that a futures ETF is likely to be approved in the US. This development aided Bitcoin and Ether in recovering some of their losses, yet the general sentiment on Crypto Twitter (CT) remains overwhelmingly bearish.
I've come across countless "crypto is dead" and "we're headed back to $10,000" statements today, which leads me to believe that the bears might be nearing exhaustion. The trajectory of BTC in the coming weeks or months remains uncertain to me. What I do know is that the halving is less than a year away, and history has shown that halvings tend to spark bull runs. Any other theories appear as mere noise to me.
I'm convinced we won't reach a peak until about a year after the halving. That's my take on it, for what it's worth...
Thanks for your attention, Adrian
