Bitcoin: What happened! My head is spinning!
How are you all? I hope you are well. I read a news today, and my head is spinning! 'Binance has suffered the biggest bloodbath in Bitcoin history!' - I felt my chest tighten just by seeing this headline! I mean, what can I say! Hearing such news in the crypto market means, ugh! My whole body goes cold! Let me share some of my thoughts with you.
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After reading the news, I thought that maybe the matter wasn't as bad as I initially feared! Phew! At first, I thought, oh my god! It's all over! But later I saw that although the price of Bitcoin has decreased a bit, I mean, it has dropped from $110,000 to $130,000, even the big crypto exchanges, like Binance, haven't suffered much loss! I mean, there hasn't been much of a 'liquidation'. Do you know what 'liquidation' means? When the price of crypto bought on credit drops too low, they are automatically sold, and all the investor's money is gone. This is not a loss of more than $200 million, which has happened on a larger scale in the past. I was a little shocked to hear this!
After reading the article, I understood that experts are saying that this may not have been a panic sale or a sale due to fear. It is a 'correction' done with some thought. I mean, the market is correcting itself a little. The price of Bitcoin is now trading close to its 100-day 'moving average'. There is a fight going on between those who buy Bitcoin and those who sell it, who knows what will happen!
If the price of Bitcoin drops below $100,030, then the next support level will be $98,000. I mean, it could go down to that! However, if the selling pressure eases a little, the price may increase a little again. Another thing I noticed is that there is a big 'liquidity gap' between $105,000 and $103,000. That means that there was a very fast sale here, the order books were very thin.
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What's the most interesting thing? That red highlighted box in the picture shows that there was a short period of trading volume increase, and 'open interest' decreased. This means that those who bought Bitcoin by borrowing may have closed their positions, but nothing too bad happened. I mean, this wasn't the biggest 'long squeeze' in history! This is a market 'recalibration' after a few weeks of chaotic prices, meaning the market is rearranging itself again!
What's the most hopeful thing? The fact that there hasn't been such a big 'liquidation' means that investors aren't taking too much risk. And the amount of investment by borrowing is not at a very dangerous level. I mean, people have become a little more careful! If there is no sudden big news, then the price of Bitcoin will probably fluctuate between $98,000 and $105,000.
I think the market is somehow digesting the price drop. I mean, it hasn't completely collapsed. This is a good thing. However, if the price of Bitcoin stays below $100,000 for a long time, then the situation could get worse, and it could be a big test of people's attitude!
All in all, after reading this news, I felt like the crypto market is like a huge rolling coaster ride! Once it goes up, once it goes down! Those who invest here have to be very brave! And always be careful! News like this teaches us that we have to be careful here at all times. And we have to make decisions after knowing all the information. What can I say!
I hope you like my thoughts. Thank you all.
If you want to read original news article go to https://u.today/biggest-bitcoin-bloodbath-in-history-of-binance-just-happened
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