Interpretation of cryptocurrency market on Dec 29 2022
Recently, US stocks have been falling one after another. The Nasdaq has fallen back to around 10,000 again. It is only a step away from falling through. This has kept the crypto market in the doldrums, but there is no panic. Crypto market is still more resilient than US stocks.
Deep bottoms tend to occur under extreme panic. But the market sentiment is more optimistic now than in May and July. So it is still essential to be prepared for a significant fall. For example, the long-term position has been filled and has low leverage, even if the significant drop will not burst the position of investors subsequently even if the fall. There is no extreme risk in itself. Just no more bullets to continue to add. But if there is long-term and short-term capital planning, or there is a distinction between futures and spots. Now it is relatively comfortable.
You can use your short-term positions to hedge some of the losses from your long-term positions. Declines in panic are often quick and short-lived, not sustainable. But the profits can be very generous. There will be money to cover the position after the profit is closed. This is a strategy. It doesn't matter if you don't have a short-term position to plan for. Long-term positions with low leverage are limited even if losses occur. In the premise of a bright market outlook, losses are only momentary ignoring emotional disturbances directly lying flat. It is also a strategy.
Solution ideas are diverse. And the end of the bear market has a long-term certainty that has been rare for many years. The problem is relatively easier to solve because there is the bottom of ignoring the trim level of the market. After all, there is little meat to catch more small fish. The focus has always been on the big fish next year.
Deep bottoms tend to occur under extreme panic. But the market sentiment is more optimistic now than in May and July. So it is still essential to be prepared for a significant fall. For example, the long-term position has been filled and has low leverage, even if the significant drop will not burst the position of investors subsequently even if the fall. There is no extreme risk in itself. Just no more bullets to continue to add. But if there is long-term and short-term capital planning, or there is a distinction between futures and spots. Now it is relatively comfortable.
You can use your short-term positions to hedge some of the losses from your long-term positions. Declines in panic are often quick and short-lived, not sustainable. But the profits can be very generous. There will be money to cover the position after the profit is closed. This is a strategy. It doesn't matter if you don't have a short-term position to plan for. Long-term positions with low leverage are limited even if losses occur. In the premise of a bright market outlook, losses are only momentary ignoring emotional disturbances directly lying flat. It is also a strategy.
Solution ideas are diverse. And the end of the bear market has a long-term certainty that has been rare for many years. The problem is relatively easier to solve because there is the bottom of ignoring the trim level of the market. After all, there is little meat to catch more small fish. The focus has always been on the big fish next year.