Recently, BTC surged by 10,000 points in just two days on November 11 and 12, from 70,000 to 89,940. Nearly 20,000 points took just a week, while such an increase last year might have taken several months.
Despite the rise from 70,000 to 90,000, about a 30% increase, most brothers still did not make money, either being out of the market, holding a light position, or not having BTC but holding altcoins.
The current price of Bitcoin has reached around 90,000, and whether to enter the market has become the biggest question at hand. If BTC rises to 100,000, 120,000, or 150,000 without getting on board, wouldn't that mean completely missing out on this bull run?
If I enter now, will it be a high point in the short term, meaning getting stuck right after entering? I want to know my thoughts on the current market and whether there will be a pullback; our new students have the same doubts.
I can understand the feelings of those at home right now; the brothers outside haven’t made money and are quite frustrated. Most of our paying students are excited and amazed by BTC's rise.
You should know that when you wake up every morning and see an increase of about four digits in your account, what kind of mood you will have.
Okay, next we will analyze with a set of data in detail for the brothers.
1. USDT Lending Annualized Rate
By checking the annualized USDT lending rates on OKEx, we can find that the annualized interest rate has now reached 43%.
If this interest rate can be sustained, then just converting RMB to USDT can yield 43% annual returns with no risk, why bother trading any coins?
This annualized average is generally around 9%, but now it has reached 43%, indicating that there are many people using leverage to go long, causing the amount of USDT in exchanges for financial management to be less than needed for leveraged borrowing, which has led to soaring interest rates.
Therefore, the market needs to liquidate a batch of leverage before starting the next wave of rise.
2. RSI daily line has reached 94
This figure is nearing the maximum value of 100, indicating a serious overbought phenomenon in the market. Historically, about 90% of the time, the price will start to pull back.
3. Fear and Greed Index, Contract Funding Rate
With this surge, the greed and fear index has also reached 80%. There is a saying in trading that goes, 'Buy in fear, sell in greed,' and 'Buy when no one cares, sell when the crowd is roaring.'
Bull markets often face sharp declines; this statement is no joke.
Even in a bull market, it cannot continuously rise, because the higher it goes, the greater the pressure will be. When the upward momentum lacks, with profit-taking, the market will quickly plunge.
However, when the market sees a downturn, it will surge upward again. After new funds inflow, it will continue to push the market higher.
In this process, we should pay more attention to the changes in the above indicators, make comprehensive predictions, seek opportunities for pullbacks, and prepare limit orders in advance for significant entries.
Currently, whether it is the overall network's holding volume or perpetual contract rates, the RSI daily line and the fear and greed index have all reached short-term highs and are facing pressure.
As long as there is a market pullback, short-term traders can choose to escape, while long-term traders can pick the right time to enter and increase their positions.
Correct investment involves planning ahead, layout in advance, strategic victory, winning first and fighting later, rather than walking while watching, trying to use tactics to turn the situation around.
The secret to investing is an open code; before you invest your money, do all the homework. After that, you don't need to do anything or make any judgments. Only then can you achieve long-term profits; otherwise, you won't be able to sleep well.
Li Shoufu once said that having so much BTC like me made him depressed for a period.
Why?
Waking up from a sleep, wow, I gained tens of millions, then after another sleep, I lost tens of millions. If you don't have prior planning and keep staring at it every day, your nerves will go haywire!
Making money is just a goal, not the purpose. More important than making money is health and life.
Walking with ink, preaching web3, I am Xi Mo, a guide dedicated to bringing you into the web3 industry, turning your main business into a side business, turning side businesses into unemployment (financial freedom), and increasing asset value after financial freedom are my unwavering and dedicated goals.
A year ago, we created a web3 private coaching wealth reader for paying students, named Xi Mo's Crypto Views, which contains over 1,000 pages recording a collection of 320,000 words on crypto wealth. Now I am giving it away for free.
Click on my avatar to receive a free electronic version of Xi Mo's views on cryptocurrency wealth.
