Author: Andrew Kang
Compiled by: TechFlow
I’m beginning to realize that this is the first cycle and full bull run for many people, and that’s amazing.
Throughout the bull run, BTC’s multi-day declines have been extremely limited, only around 20%, and many appear to have leveraged during the last correction in April.
However, in the last cycle, we frequently had leverage drawdowns that resulted in 30-60% drawdowns and collective losses of hundreds of billions of dollars.
Different cycles, different patterns, but when people become too comfortable and think nothing can happen, that’s usually when disaster strikes.
While I am bearish, this is not telling you to short the market or sell everything in the market. Just make sure you are aware of the risk and don't bet everything on one trade that could make you lose big if we move beyond your expectations.
The optional value of owning a reserve is infinite.
A reader's private message to Andrew Kang
The current market environment reminds me of May 2021, not actually June 2021, and definitely not December 2020.
We are used to only going up and not down, and all the declines are for bidding and reversed by turbo. We had a big correction from 64,000 to 45,000, and everyone was buying, expecting the same correction to happen. But what happened in the end was continuous decline. We were full of hope: more retail investors were coming; $40,000 was iron support; super cycle, etc.
The same is true in the current environment, where the bullish momentum is still 9-10 months away. Only this time it is the Ethereum ETF and the legendary trader is calling for higher prices. I believe that GCR is correct on a multi-year time horizon and we will see new highs for Bitcoin (but not all alts) in 2025. But that doesn't mean we won't see an extreme correction on a one-month timeframe.
You must remain humble in front of the market .
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