A crypto hedge fund manager said there may be more time for traders to take advantage of buying opportunities in this cycle, after the broader crypto market has plunged on daily price charts.
"There will be volatility mid-month, but the likelihood of dips being buying opportunities for longer than people expect," Syncracy Capital co-founder Daniel Cheung said in a December 9 X post.
Investors 'constantly seeking profits'
Cheung said that in this cycle, traders have shifted to a "short-term" trading mindset, "constantly seeking profits." In the past 24 hours, the total crypto market capitalization has dropped 5.41% to $3.44 trillion, according to CoinMarketCap data.
In a December 9 X post, crypto analytics firm Santiment highlighted that some altcoins with significant gains since October have "dumped today."
Among the top 100 cryptocurrencies, the biggest losers in the past 24 hours were Kaia (KAIA), down 31.33%; Stellar (XLM), down 28.31%; and Flare (FLR), down 26.87%.
However, Santiment said if retail traders "react with fear" and panic-sell cryptocurrencies too quickly, this could trigger a strong recovery.
"Expect a quick recovery in assets like TRX, AVAX, DOT, ICP, POL, FIL and TIA."
Swyftx's head of analysis, Pav Hundal, told TinTucBitcoin that the broader crypto market correction "looks like a minor disruption," and added:
"Traders had rushed into leveraged long positions before the drop occurred. As soon as the spot market liquidity dried up, they ran into trouble."
"The leveraged long positions have gone through the equivalent of a mass extinction event in the market over the past 24 hours," he further said.
In the past 24 hours, around $1.58 billion in long positions have been liquidated in the crypto market, according to CoinGlass data.
$1.58 billion in long positions have been liquidated in the crypto market in the past 24 hours. Source: CoinGlass
Extremely difficult to time the crypto market
Cheung said "timing the market is extremely difficult."
"In previous cycles, participants were mainly in a hodl mindset and bought the dips," he shared.
"The reality is that timing the market is extremely difficult, and the fact that so many people think they can identify the 'top' of the crypto market now makes me believe crypto is set to go up for longer than expected," Cheung explained.
Bitfinex analysts recently said that short-term Bitcoin price drops may not be as severe as last week's 10% plunge, as selling pressure has eased significantly after Bitcoin first breached six figures.
"With the large drop in realized profits and selling pressure, we can expect future dips to be less abrupt than last week's experiences," the Bitfinex analysts stated on December 9.
