Many people ask: Is it now time to clear the inventory, is it okay?
The crypto market has experienced significant fluctuations recently, and last night went through another "major cleansing", with many people likely having been liquidated and their account balances reduced to zero.
Looking at the essence of the matter, apart from the collapse of the Assad regime, there have been no major geopolitical events. The real reason is: the three major US stock market indices have generally declined, and Nvidia's stock price has also fallen by 2.5%, which has had a significant impact on the market. Previously, China's anti-monopoly agency also announced that it would begin an investigation into Nvidia, and China has also been increasing its sanctions on Nvidia. Combined with the tariff policies of the Trump administration in the US, China has also begun to retaliate, leading to an escalation of the trade war and financial war.
Before the risk arrived, many people would think that you were talking about the bearish part to disrupt the market, especially when Bitcoin was once around $10,000, the drop was so large that everyone thought Bitcoin would continue to rise. In fact, this drop, although Bitcoin seems to have fallen a lot, it is actually the Altcoins that are the hardest hit. Many people mistakenly thought it was the "leverage effect" of Bitcoin, believing that Altcoins would continue to rise, but the result was that the Altcoins directly "bled to death".
Now it is very clear that this wave of decline is simply because the coin prices rose too fast, and the market needs to be washed. Often in a bull market, the logic behind a sharp decline is: without a sharp decline, retail investors will not cut their losses. At this time, the big players like to frequently insert needles, pull up, and then fall, with no rules at all, just to attract more people to enter the market and harvest the money from the short and long sides.
So, everyone should just calm down first, and wait until after Trump takes office to make a decision. Although it is difficult for retail investors to refrain from trading, if you insist, I'll give you a life-saving advice: set a stop-loss, and trade quickly in and out.
What if you insist on clearing the inventory?
If you plan to clear your inventory and exit now, it is understandable, but if you still want to go back and continue trading, clearing the inventory may not be suitable.
From a long-term and short-term perspective, clearing Bitcoin is not a wise choice. The long-term trend of Bitcoin is relatively stable, and once you clear your inventory, you may miss many opportunities.
From a few months' perspective, clearing Altcoins is also not good. Clearing during a bull market often leads to a trap. For example, if you cleared your inventory in early April, you may have the opportunity to re-enter the market in the following months, but you may also clear your inventory again. This is essentially a problem of investment habits. If you make a misjudgment after clearing your inventory, you may fall into the trap of chasing highs, or see others making money while you are left with an empty position. If you try to short, you may end up losing even more, or even reaching zero.
Clearing in the middle of a bull market is usually a big trap. The trend of a bull market is often a fluctuating upward trend, and it will not rise sharply all at once. The market will definitely have corrections, and the big players are also "tricking" everyone, but I'm not worried at all.
There are plenty of opportunities, just control your position size
The crypto market is never short of opportunities. If you really can't resist the urge to buy coins, you must control your position size. My personal advice is to keep the position size at around 30% at most, keep enough ammunition, and wait for the market to reach a low point before adding more.
Today the market has corrected for a day, and the profits of many partners have been wiped out, or even trapped. If the correction lasts a week, others may have already doubled their money, while you may have just broken even.
So, I still want to remind everyone: no matter what, always keep enough ammunition. It's better to miss an opportunity than to be trapped. If you are bullish on certain coins, don't panic when the market corrects, but see it as a good opportunity to add more, and seize the opportunity.
Finally, there are actually many things that have not been written in, such as specific opportunities and specific decisions, which are often not something that can be summarized in a single article.
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