$9 Billion worth trades got liquidated in last 24 hours.

[teosanru]

The most horrific story of the day. A total of 8 Billion Dollar market got liquidated today in just the last 12 hours due to the violent bitcoin crash from 42k to 30k(even 29k or 28k in a few exchanges). But the most important thing that we should learn from today's crash is the nature of unpredictability that market has. People generally go in with high leverages and end up getting liquidated at very wrong points. Even if they aspire for a correction market sometimes fall so vigorously that they aren't even able to get out at the correct point. Some might say it's manipulation some might say it's Elon behind it. But the truth is no matter whoever is behind this, if you want to stay in the market, obey the market otherwise just walk out. So here are the two things you can do to avoid such crashes especially for leverage traders:

1. Use a tight stop loss: This is by far the most important advice and something you should have heard a lot of times. Never long/short from a point where stop loss can be so low that you won't be able to handle it. Don't be frightened with the small loss if you exit on stop loss you might get a very good chance to buy much below.

2. Never Overleverage yourself: I generally consider anything above 5x especially in altcoins as overleveraging. Do this only if you are very very sure of the support or you sure that your stop loss is too tight. Also, the margin in only a certain percentage of your capital so that you can save the trade by buying again slightly above the liquidation point thereby dollar-cost averaging your price thereby lowering the liquidation price.

[JooBra]

A lot of people lost money. It is what it is we all know the risks when we go for margin trading. Shorting would have been a god option in last couple of days but that is kinda agains human nature.

[nelson4lov]

~Snipped

That's right. Majority of the people who got rekt today are the leverage and futures traders because those on spot are just down between 40 - 50 %. On a 10x leverage, that's like 500% down and I know a lot of people who use 20x leverage which is too high, hence the large number of liquidations. Two of my orders got margin called and liquidated but these were just small amounts I put in after yesterday's dip to test the market if that was time to start buying the dip but I was wrong. Today's dump has so many lessons like:

• taking profits from time to time
• Having a better risk management plan that covers situations like this.
• Not overleveraging.

So many winning trades turned to losing trades today.

A lot of people lost money. It is what it is we all know the risks when we go for margin trading. Shorting would have been a god option in last couple of days but that is kinda agains human nature.

That's the thing. As humans, we're always expecting prices to go up and not down. Majority of the trades I've met are long traders. It's only a small subset of them that open short positions but only on fewer occasions.

[DarkDays]

The pain has been experienced by many involved in the space.

It just seems like RUG PULL from institutions and market manipulator groups. There is no way this type of dump is natural. The dips and peaks look too manipulative.

Let me share with you a very interesting outlook ... (for the full explanation on this, watch this video https://www.youtube.com/watch?v=Lhf_2gJJS1I&ab_channel=uncomplication)

Thoughts?

[OcTradism]

1. Use a tight stop loss: This is by far the most important advice and something you should have heard a lot of times. Never long/short from a point where stop loss can be so low that you won't be able to handle it. Don't be frightened with the small loss if you exit on stop loss you might get a very good chance to buy much below.

Stop loss orders can not help you yesterday. The market crashes and stop loss orders might be missed. Cascade effects will be triggered in crashes. Many big exchanges were down for a while and their bad operations only make the crashes worse.

Alternative for stop loss order is Stop limit order. It help you to have a range between the triggering price and a price you will cut loss. You are free to set that difference but the trigger price should be a strong support price. If it is broken, your stop limit orders will be activated.

Types of order

Stop-Limit Order
What is a stop-limit order?
A stop-limit order is a conditional trade over a set timeframe with stop price and limit price features. A stop-limit order will be executed at a specified price after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better.

[Beparanf]

The pain has been experienced by many involved in the space.

It just seems like RUG PULL from institutions and market manipulator groups. There is no way this type of dump is natural. The dips and peaks look too manipulative.

Let me share with you a very interesting outlook ... (for the full explanation on this, watch this video https://www.youtube.com/watch?v=Lhf_2gJJS1I&ab_channel=uncomplication)

Thoughts?

Pretty solid explanation and this is what I really expecting to happened. It just happened earlier than what I expect. It seems that institutional investors are having a joint activity to manipulate the market by spreading FUD when the price is high and announcing they acquire additional holdings when the price is down after the FUD. The price already reach the point where the wall at 60k cannot be destroyed due to low fresh money coming in to boost the price higher.

[NeuroticFish]

Thoughts?

It was one of the days that separate the 3 groups: professional traders, trader wannabes and lucky profit takers.
Probably the trader wannabes went through hell.
The professional traders had a rather bad days, but they'll recover.
The lucky ones bought the dip and maybe also sold already.

The good thing is that all those positions liquidated will have to be bought back by those who want to continue trading.



I was worried for 1-2h while it has fallen to 30k and until it has recovered to 36-38k. And now we're back inside the expected range.
However, the fall in the hash rate still bothers me.

[zanezane]

A lot of people lost money. It is what it is we all know the risks when we go for margin trading. Shorting would have been a god option in last couple of days but that is kinda agains human nature.

Shorting is the least expected because people have been expecting that bitcoin is going to go up after a really hard dip in the prices and you are right that people are losing money, a friend of mine shared a story about someone who committed suicide because his life savings got wiped out because of leverage.

[danherbias07]

But the truth is no matter whoever is behind this, if you want to stay in the market, obey the market otherwise just walk out. So here are the two things you can do to avoid such crashes especially for leverage traders:

I like this. It's the real deal. Those who cannot embrace that truth will surely just walk away in an instant.
Experience and research is very much critical here. If you had been there during the wild movements of Bitcoin then this won't even shock you. If you also read about the history of Bitcoin price movement then you know it will come sooner or later.
The market crashed but it doesn't mean it will stay that way forever. Some may say they could have sold at a higher price and could have been enjoying their profits, but no worries another chance will come.

[semobo]

Bitcoin back into $40K region even $42K on most exchanges which shows that manipulation by anyone is not going to sustain longer if there is actual support for the cryptos, I saw that huge anti crypto investment all over the internet due to the crash made after the Elon Musk tweets, but once again Bitcoin proved all of them as wrong.

[el kaka22]

Most people who do these type of high leverages are not really spending money they can't afford to lose, at least "most" of them, some of them might be doing it for sure. I just feel like if you are going to lose everything you have, that is not a good trade and I wouldn't do that. However even with that fact, unfortunately there are some people who go all in on some high leverages on any side, and when it goes to other side they end up losing everything. If you are going to do leverage, each trade should be under 5% of what you own, which will make sure that the worst that happens will be you losing 5% of your money.

There are some that do not follow that strategy because 5% of what you own will not bring you 100x profit in a few hours, they want crazy risk with crazy profit potential and that is why they end up with losing all of their money.

[slaman29]

It was one of the days that separate the 3 groups: professional traders, trader wannabes and lucky profit takers.
Probably the trader wannabes went through hell.
The professional traders had a rather bad days, but they'll recover.
The lucky ones bought the dip and maybe also sold already.

Actually, the problem with these types of volatility is that wannabe traders can become very lucky profit takers, thus seeing themselves as professional traders.

Pro traders probably lost a bit of money in this period if their stop losses all triggered, and if they bought the dip on some charts, based on last week, they would probably stop loss again.

[gabbie2010]

High profit, high risk. We know that future market can give people boost in their profit. But they should understand risk behind it is big as it's possibility amount of profit. If me, i keep stay in spot trading because honestly i am not ready yet to lose all my assets. Although can set stop loss, i think me still not good at future trading and choose to buy then hold my coins.

At least when the market was green future traders who trade with leverage always smile after earning large profits so I don't see any reason for complain now that market is red I expected them to have taken risk into consideration in their trading, it was very unfortunate that a whopping $9 billion dollars was liquidated, to cut my losses I always exchange my Bitcoin to a stable coin to avoid this massive dumping of the price, indeed a trying time for cryptocurrencies investors.

[teosanru]

~Snipped

That's right. Majority of the people who got rekt today are the leverage and futures traders because those on spot are just down between 40 - 50 %. On a 10x leverage, that's like 500% down and I know a lot of people who use 20x leverage which is too high, hence the large number of liquidations. Two of my orders got margin called and liquidated but these were just small amounts I put in after yesterday's dip to test the market if that was time to start buying the dip but I was wrong. Today's dump has so many lessons like:

• taking profits from time to time
• Having a better risk management plan that covers situations like this.
• Not overleveraging.

So many winning trades turned to losing trades today.

I think 10x Leverage people cannot even sustain a move of 3-4k$ forget about $9k. Even those who took leverage as low as 4x would have been liquidated on many exchanges. But yeah one should even expect the most unrealistic dumps when trading in futures as the market is too much manipulative in bitcoin. For once when Binance crashed I was sort of happy that at least people won't be able to sell more of their bitcoins. But soon I realized that even the buy inflow won't step in if we don't open Binance .

The pain has been experienced by many involved in the space.

It just seems like RUG PULL from institutions and market manipulator groups. There is no way this type of dump is natural. The dips and peaks look too manipulative.

Let me share with you a very interesting outlook ... (for the full explanation on this, watch this video https://www.youtube.com/watch?v=Lhf_2gJJS1I&ab_channel=uncomplication)

Thoughts?

I saw hthis very interesting formation. People are calling it Wyckoff distribution. This can be a good reference point to the current BTC scenario but this would have been more realistic in the previous wave. This time we all know that BTC always has the habit of coming back strong. Moreover, I even remember people who compared this with the dot com bubble and the tulip bubble in the previous wave unfortunately all of them have wiped out now. So It's still hard to believe this chart.

[boyptc]

I used to avoid leveraging as it's not my thing. Spot is the best and a comfort for me.

It just seems like RUG PULL from institutions and market manipulator groups. There is no way this type of dump is natural. The dips and peaks look too manipulative.

That's a good initial thought that there's a chance that it is really is. But due to the volatility, we can really expect an unnatural dip like this to come and the same goes for a rise.

[Ronny29]

It’s scary to even imagine how many broken lives in one day

[Johnyz]

It’s scary to even imagine how many broken lives in one day

That’s the risk of futures trade and I’m confident that those who are doing this knows about the risk of losing money instantly, its very unfortunate to those who didn’t monitor the market and got liquidated when they wake up. This is why I always trade on spot only so I can lessen the risk and I control my every decision, trading is very risky already those who want to earn more must be ready for every possibility especially on losing money.

[CaVO32]

It’s scary to even imagine how many broken lives in one day

That’s the risk of futures trade and I’m confident that those who are doing this knows about the risk of losing money instantly, its very unfortunate to those who didn’t monitor the market and got liquidated when they wake up. This is why I always trade on spot only so I can lessen the risk and I control my every decision, trading is very risky already those who want to earn more must be ready for every possibility especially on losing money.

Spot trading is really helpful especially if you want to control what's going on with your funds, but you need your time on this. I hope those who lost in this trading will learn their lessons and be more prepared next time around. No one can help you in this market but yourself.

High profit, high risk. We know that future market can give people boost in their profit. But they should understand risk behind it is big as it's possibility amount of profit. If me, i keep stay in spot trading because honestly i am not ready yet to lose all my assets. Although can set stop loss, i think me still not good at future trading and choose to buy then hold my coins.

At least when the market was green future traders who trade with leverage always smile after earning large profits so I don't see any reason for complain now that market is red I expected them to have taken risk into consideration in their trading, it was very unfortunate that a whopping $9 billion dollars was liquidated, to cut my losses I always exchange my Bitcoin to a stable coin to avoid this massive dumping of the price, indeed a trying time for cryptocurrencies investors.

This is actually where stablecoin is useful. But you need to be careful also which stable coin you will buy. Better choose the known and popular ones.

[teosanru]

High profit, high risk. We know that future market can give people boost in their profit. But they should understand risk behind it is big as it's possibility amount of profit. If me, i keep stay in spot trading because honestly i am not ready yet to lose all my assets. Although can set stop loss, i think me still not good at future trading and choose to buy then hold my coins.

At least when the market was green future traders who trade with leverage always smile after earning large profits so I don't see any reason for complain now that market is red I expected them to have taken risk into consideration in their trading, it was very unfortunate that a whopping $9 billion dollars was liquidated, to cut my losses I always exchange my Bitcoin to a stable coin to avoid this massive dumping of the price, indeed a trying time for cryptocurrencies investors.

This is actually where stablecoin is useful. But you need to be careful also which stable coin you will buy. Better choose the known and popular ones.

Stable coins were the best invention actually. Even though USDT was and still is criticized a lot for its lack of transparency and how enough dollars are not there to back it but despite that, I have seen its value has been consistently kept stable by the developers. I still find it much safer and accurate to dollar than BUSD, DAI, PAX or USDC even though they might be more advanced and more secure than USDT. I still remember those old days of 2016-17 when all you could see was the BTC trading pairs there was no way to buy alts using stablecoins but Binance slowly changed the fashion.

[boyptc]

There's another thread that's very sad that can be connected to the liquidation of this huge amount in the market.

--> https://bitcointalk.org/index.php?topic=5338723.0