Hello everyone. I hope you're all doing well. A couple days ago I came back after a break and I talked about the latest situation of the market and expressed optimism that it might get better from here on out. Now while that is something I would like to hear and also love to happen. But nothing really is that easy. So just like there is a scenario where on could be a good thing and that the leverage clearance could make a more pure market, essentially cleansing from all the debt. It could be a bad thing and beer market could be upon us. Let's explore that today.
We should first start with the support barriers. And one thing must be made clear that this argument I am making was not relevant before a few days ago. Because only recently BTC went below $100,000 and now all these realities can be materialized. So all of us have always known that $100,000 is a very important psychological Mark for BTC. When it exceeded $100,000 many people took profits. Many sold their holdings and logged in a good day's money and left crypto forever. The same way for people who held on to crypto after $100,000, it is a important point of caution. Many have put their long trades based on this price range. And they have put their stop loss around this range. So when the sell-off started many stop losses got triggered and it only added to the cascade. Then there is the overall greed and fear index. The market was in extreme greed before all this happened. But now it is in extreme fear. People are genuinely afraid of putting in money and even though the situations outside are probably the best in a long time, with crypto lenient legislations, other financial markets performing well and other things. But somehow crypto is not moving like the other markets and then there is exhaustion. Popular belief is that the market has exhausted. And there is very less new money being pumped into the market.
So it is also not impossible that the top is in and we might not get a higher price in this cycle. Even though the current landscape around crypto is more different than ever with all the geopolitics and government interventions on the books, in the end of the market is made of investors. And if they don't come then it will obviously inevitably slow down.
