The Market Can Stay Irrational Longer Than You Can Stay Solvent
The title to this post is one of my all time favorite market mantras. It's one I heard back when I starting day trading in 2008. And boy, it got put on display that year for sure.
We see it all the time though, and we just saw it in crypto again.
Crypto Dump on Tariff news (or whatever your catalyst of choice is)...
Sunday night Bitcoin and just about every alt flash crashed lower. I say flash since the drop was basically recovered within 12 hours.
Looking at the bitcoin daily chart...
That is such a wild move. Price cracked 100K Sunday morning and by the evening it was pushing below 92K before the rebound happened.
For those trading, that move seemed like a avalanche as any attempts to buy a bounce were met with selling on the shorter timeframes. 8K points in the matter of half a day is an aggressive move and a ton of leveraged longs got liquidated, even ones that were conservative using 92k as a support level.
Then, woosh...once the liquidations happened up we went and by late Monday morning bitcoin had recovered all the losses and went green.
Literally we saw a near 20K move roundtrip between the initial dip and then the subsequent bounce back above 100K.
So sick.
Maybe that was the last flush before BTC reaches for new highs???
Posted Using INLEO
There is another, bigger crash to come.
ETH in the hundreds.
XRP back in the 20¢
And over so fast, that you probably won't be able to get onto an exchange and buy bitcoin.
I cannot even speculate what causes this. Maybe a stock market crash, where people need to pull money from other places. Or maybe March is the month where bitcoin shows ETFs that they can't hang with the big boys. Or maybe, the biggest bitcoin dump ever.
It is probably something to do with money / money supply / banks.
But, i really do not know. There are just strong feelings.