No idea why Bitcoin dumped so much but opened a short.

[0xredhot]

I was not happy about crypto and bitcoin dumping, this week was crazy but game is game, shorted BTC on perp DEX and did +241% lol... I was trying to research why its dumping, someone said it was bank attack on crypto, other say it is Binance, also news about Epstein I think in overall could be all together and this negative sentiment running around twitter and everywhere just did cascade dump.

https://cdn.fileshare.ing/production/bxev0ukm9it.png

[SilentNightmare]

Yeah, this dump was wild
Nice catch on the short though, that’s exactly why having a plan and risk management matters more than knowing the reason behind the move.

[0xredhot]

I am gonna be honest, I had no plan, I just shorted after checking market sentiment lol... but somehow I catched it.

[bournekin]

I was not happy about crypto and bitcoin dumping, this week was crazy but game is game, shorted BTC on perp DEX and did +241% lol... I was trying to research why its dumping, someone said it was bank attack on crypto, other say it is Binance, also news about Epstein I think in overall could be all together and this negative sentiment running around twitter and everywhere just did cascade dump.

people are dumping because of how unstable things are right now globally there is so much going on and the media isnt helping. yeah its defo a combination of things i think alot of people are feeling unsettle with the crypto market right now. will things improves holder hope so

[Asuspawer09]

I mean, in my experience, if there is a huge drop like this that is happening, it's probably a good time to do trading since there are probably going to be a lot of movements in the market and could easily give you a huge amount of winning if you are lucky and predict the movement. Going with the dump or bouncing back for sure, you could make a huge profit.

This was a huge price manipulation for sure, but we are already expecting it since we are already on a rally a long time ago without having a huge dump, so for sure support are weaker and could easily be a bubble, there are a lot of this kind of stories in every cycle so we could easily expect all of it to be blame because crypto or all stocks are down, even gold and silver.

[GhostRider25]

people are emotional morons, you can always count on them to think with their feelings.  knowing this it's very easy to see when they will probably do the next 'stupid' thing concerning investment.  See it coming, pose for it, and catch it as it flies by and you'll consistently do well.

Aaron

[GreatArkansas]

So, you shorted the market without any reason or analysis?
Nah, it seems you are just doing gambling instead of trading if that is your way to trade.

[DPHOR]

One thing I would want you to understand at the first place is that bitcoin is a very volatile assets and you can't expect bitcoin to be stagnant without fluctuations. What truly makes bitcoin principles to be complete is because of its up and down movement, anyone who has been in the system should be knowing how to control themselves our how to keep doubling their portfolio during the bear market. We should always expect bitcoin to do the usual thing at any given time as the price fluctuation which keeps the price increasing and decreases, and what propelled this? News of course swings the market to how it wants without even the whales controlling it from their because most people thinks whales are those in charge controlling prices.

[pooya87]

I am gonna be honest, I had no plan, I just shorted after checking market sentiment lol... but somehow I catched it.

One of the reasons why bitcoin has been so volatile all this time with wild jumps and crashes is exactly this. There are still a lot of people who are making "bets" on the price as if this is a gambling game. Like any gambling game the "house" always wins and these gamblers lose money in the long run. In this case the house is the smart money that takes advantage of the panic sell to buy bitcoin at a discount...

[Big Dirams]

So, you shorted the market without any reason or analysis?
Nah, it seems you are just doing gambling instead of trading if that is your way to trade.

If surely the OP didn’t do any analysis at all and just went to check out the fundamentals reasons why bitcoin drops and suddenly rush into the market without analysis or any plans at all without  technical analysis then I will gladly assume that such trader is just risking so much and it is likely to be called gambling.
 If we check out the fundamentals reason of bitcoin dropping then we need to persuade how to come up  with plans and buy at lower price and have strong analysis but when all we do is just go into decision then it absolutely a gambling.

[Dechris_08]

I was not happy about crypto and bitcoin dumping, this week was crazy but game is game, shorted BTC on perp DEX and did +241% lol... I was trying to research why its dumping, someone said it was bank attack on crypto, other say it is Binance, also news about Epstein I think in overall could be all together and this negative sentiment running around twitter and everywhere just did cascade dump.

https://cdn.fileshare.ing/production/bxev0ukm9it.png

Congrats on the win, the dump wasn't some coordinated bank attack, it was overleveraged longs getting liquidated in a classic cascade.

When you see BTC drop 10%+ in hours, check the funding rates and open interest beforehand; they were sky-high, meaning the market was begging for a flush.

Epstein news and Binance FUD might've been the narrative, but the real cause was leverage getting squeezed out of the system like it always does.

[MusaMohamed]

One of the reasons why bitcoin has been so volatile all this time with wild jumps and crashes is exactly this. There are still a lot of people who are making "bets" on the price as if this is a gambling game. Like any gambling game the "house" always wins and these gamblers lose money in the long run. In this case the house is the smart money that takes advantage of the panic sell to buy bitcoin at a discount...

They are too greedy, want to have quick profit with leverages, even very high leverages. They are too confident by believing that they can outsmart the market and market makers while eventually the fact and results would be very painful for them.

Liquidations against their leveraged positions bring a lot of loss, severe loss and they will cry like "Bitcoin market is too wild, volatile, unfair" but they will not change themselves by coming back with money and leverages again.

With this liquidation map
https://www.coinglass.com/pro/futures/LiquidationMap

and the liquidation heatmap
https://www.coinglass.com/pro/futures/LiquidationHeatMap

we can see many "gamblers" are in the market around big walls of resistances and supports but they will be liquidated soon.

[Lida93]

Humans are quickly overtaken with fear and this has being how the market drivers feeds on this fears of the common retail traders and investors, causing some events that would trigger conflicting emotions leading to panic sells from bitcoin price dump while they buy at cheaper price, it's like a virtuous circle for the benefitting of the big players who understand much better what volatility entails.

[beami]

I was not happy about crypto and bitcoin dumping, this week was crazy but game is game, shorted BTC on perp DEX and did +241% lol... I was trying to research why its dumping, someone said it was bank attack on crypto, other say it is Binance, also news about Epstein I think in overall could be all together and this negative sentiment running around twitter and everywhere just did cascade dump.

bitcoin tanked out of nowhere, no one really knows why someone opened a short, grabbed 241% and bounced
the rest: conspiracy theories, epstein, twitter on fire, same old

[beami]

I was not happy about crypto and bitcoin dumping, this week was crazy but game is game, shorted BTC on perp DEX and did +241% lol... I was trying to research why its dumping, someone said it was bank attack on crypto, other say it is Binance, also news about Epstein I think in overall could be all together and this negative sentiment running around twitter and everywhere just did cascade dump.

bitcoin tanked out of nowhere, no one really knows why someone opened a short, grabbed 241% and bounced
the rest: conspiracy theories, epstein, twitter on fire, same old

241% is insane lol, well played. Honestly, nobody really knows why the dump hits, there's always theories floating around, but at the end of the day it's just collective fear and cascade liquidations. The important thing is you read the moment right and executed well. Do you usually run shorts often or are you more of a holder?

[0xredhot]

I am more of a spot holder, I was not very good with shorts except this one, I usually can catch longs better, but those are rare and everyone is betting on that, but eventually market looked so bad, I just took it from psychological level I dont do analysis on trading chart like those lines people do on youtube, perpmate dex does not have those tools in anyway, I just went by gut feeling and psychology analysis and what I see as sentiment in the crypto (fear, binance fud, banks fud, epstein bitcoin fud). The dip looked like there was no support at all scary at the same time aswell lol... but thanks!

Eventually my spot got hurt, but thats long term for me.

[suhadi88]

The key point here is that due to the unstable market, Bitcoin could plummet rapidly at any time, putting even more pressure on short sellers.

Next time, don’t trade just because of a big red candle. Wait for confirmation, define risk first, then enter. Surviving is more important than catching every move.

[GhostRider25]

well he did pretty good with what he accomplished.  no need to change the strategy that much.    diff strokes for diff folks.
yes a huge red candle is an opportunity and if you are quick enough, you might catch the cat kick too.

you can also pre stage for the green candle too.   diversify your tactics so no matter what the market is doing, you got some money doing something for you.
money only earns when it's moving really.  even if you made a bad call and got stuffed into a corner,  move it around a bit, with just a little work you can work off that ooh shit and get that money right back where it left off, instead of sitting months, a year, waiting for a candlestick to hopefully vindicate your bad call.

[free-bit.co.in]

I am more of a spot holder, I was not very good with shorts except this one, I usually can catch longs better, but those are rare and everyone is betting on that, but eventually market looked so bad, I just took it from psychological level I dont do analysis on trading chart like those lines people do on youtube, perpmate dex does not have those tools in anyway, I just went by gut feeling and psychology analysis and what I see as sentiment in the crypto (fear, binance fud, banks fud, epstein bitcoin fud). The dip looked like there was no support at all scary at the same time aswell lol... but thanks!

Eventually my spot got hurt, but thats long term for me.

It sound more like you are gambling than trading when you are placing orders based on emotion rather than chart analysis

You might be right this time and make a profit, but I do not think thats a sustainable way to make money in the long run. Luck will not smile on you forever. Therefore, if you lack the knowledge, strategy, and skills to manage risk...sooner or later you will pay a heavy price.

Trading inherently involves risk, and the risk is even higher when trading is based on psychology and intuitive judgment

[Adams0001]

The key point here is that due to the unstable market, Bitcoin could plummet rapidly at any time, putting even more pressure on short sellers.

Next time, don’t trade just because of a big red candle. Wait for confirmation, define risk first, then enter. Surviving is more important than catching every move.

Bitcoin is unpredictable that is why you just need to risk what you can afford to lose because now that the price is dumping many people are in lose currently but there that invest to hold for long term they won't panic because they get the believe that bitcoin will surely raise again, so if you're capable you can top up your investment and get more profit when the price is increasing. Bitcoin is a very good in investing and you will notice that since the price is decreasing currently other coins are dropping too that should have show the power of bitcoin, am sure that some investors that are scared to hold for long term will be in losing for now and probably they can sell in lose because they didn't get believe in it and if you don't trust something if you try he can failed, you just need to think wisely because experience investors surely know that this time will comes.