A Gentle Reminder
Yesterday's carnage might seem like a harsh and heavy blow. However, it acts as a gentle reminder of what will happen if Bitcoin flips bearish and enters a prolonged bear market. I addressed this scenario in a recent article, The Death Of The 4-Year Cycle. Essentially, we all hope for a strong quarterly close. However, if the market turns bearish, altcoins are in a world of trouble.
Many altcoins plunged by 60% to 68%, marking one of the most significant 24-hour drops to hit the altcoin market. Fortunately, there has been a rebound. In such scenarios, much of the intensity is due to futures liquidations. Traders are caught off guard, ultimately creating a cascade event. This was once again the case for altcoins.
My decision to trade BTC with leverage instead of altcoins has proven to be the better option. Bitcoin remains trading above $110,000, making it the clear choice by far. Even with leverage, the downside is a lot less severe.
Final Thoughts
Once again, the market has sent out a warning regarding altcoins. This time is different; the numbers don't lie. Always exercise caution and practice risk management. All the best, see you next time!
Disclaimer
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This article was first published on Sapphire Crypto.
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The rebound also happened so fast and some users weren't able to successfully bid the new lows. Bear market, next year, or whenever, could be brutal for many alts.