The volatility in crypto lately is on another level. Liquidation maps show nearl

[Olamidetechie]

The volatility in crypto lately is on another level. Liquidation maps show nearly $5B in shorts stacked above if we get a squeeze, it could move fast.

BTC is already down 22% this year and might close both Jan and Feb red, which is rare.

There are also rumors about fresh Fed liquidity hitting the system. Whether that’s real or not, this is a high-risk environment. Tight risk management and a hedge plan matter more than ever.

Personally, I spread risk and use structured programs like we stay as part of my hedge strategy mainly for capital protection features. Not saying it’s for everyone, just how I manage exposure in volatile conditions.



Are you positioning for a squeeze, or bracing for another leg down?

[Charles-Tim]

Liquidation map is mostly something that you should not follow yourself with, the more the marketcap of an asset, the more you will see liquidations in higher amount of money, but that may not translate into highly volatile market. Bitcoin has been less volatile than what it is in years before.

[passwordnow]

BTC is already down 22% this year and might close both Jan and Feb red, which is rare.

That's not rare even if you'll be specific with those months. Going down after coming from the top isn't rare.

Are you positioning for a squeeze, or bracing for another leg down?

Bracing for the upcoming leg down. We're getting the hints but just get ready for that. If it's otherwise, much better because we've anticipated the opposite of it. But if it tends out your readiness is right, you'll not be surprised anymore of what has come.

[arbitrage]

I would more focus on sentiment instead, I'm not saying liquidation map is not a good tool, moving too fast for me I guess.

[justdimin]

Are you positioning for a squeeze, or bracing for another leg down?

Bracing for the upcoming leg down. We're getting the hints but just get ready for that. If it's otherwise, much better because we've anticipated the opposite of it. But if it tends out your readiness is right, you'll not be surprised anymore of what has come.

I wish more people realized this, it's quite common for the price to fall during these times and we shouldn't be really shocked about it, after all it's the most common way and we should be aware of what the situation at hand is.

We peaked and after that it gets into bear market and we are not really shocked that much about it and we should be getting used to it by now and not be seeing this as weird. I get that not everyone understand the cycle between bull markets and bear markets but this is the way it moves and we should be okay with it. Obviously it takes time and we are not seeing this be different for now but as long as we keep realizing the bear market is under way then we are not going to be shocked at these drops.

[oktana]

For me it’s survival first, profits second.
It’s evident that the market right now is very unstable.
Yes, there’s a lot of short positions sitting on price, which simply implies that if btc goes up fast, the traders could be forced to buy back in and push price even higher, that’s the SQUEEZE.

Having said that, it doesn’t guarantee that it would or might happens. Big liquidation levels just show where peopl might get hurt, sometimes the market goes the opposite way first.
Concerning the rumors of the FED adding liquidity? If that’s true then it could help price bounce, if it’s false, the possibility of witnessing a fake pump before another drop is high.

On my end, I’m not rooting on either direction, I’ll keep smaller positions, manage the risk, stay flexible. In times like this, protecting capital matters more than trying to predict the next big hit.

Again, survival first, profits second!

[sana54210]

The reality is that we are dealing with something that is getting to a point where volatility is just a way for it to not go down fully, because if it had a straight down then we would all short and make a ton and would buy bitcoin with that, and it would go up, and then it would crash more and repeat so it becomes volatile again.

We are just having downs on general, but if shorts get to much, we just go up a bit to cash them out and then go down some more later on. It's just a normal way for markets to move and nothing new. You do not get to see price go up every day for a whole month, same with going down, sometimes it goes up and sometimes it goes down and overall it does one direction but short frames it can do anything.

[Wakate]

The volatility in crypto lately is on another level. Liquidation maps show nearly $5B in shorts stacked above if we get a squeeze, it could move fast.

BTC is already down 22% this year and might close both Jan and Feb red, which is rare.

There are also rumors about fresh Fed liquidity hitting the system. Whether that’s real or not, this is a high-risk environment. Tight risk management and a hedge plan matter more than ever.

Personally, I spread risk and use structured programs like we stay as part of my hedge strategy mainly for capital protection features. Not saying it’s for everyone, just how I manage exposure in volatile conditions.



Are you positioning for a squeeze, or bracing for another leg down?

For any investor that choose to invest in Bitcoin, my advise for them is to buy Bitcoin and hold without bothering about what people think about the crypto market. The crypto market is already saturated and people are giving different signals based on their own perspective about the market.

So many sentiments in the market and this is making investors to ask too many questions before they invest because they had been hearing speculations that the price of Bitcoin is going to dip more by next month.

[Iranus]

The way the price has been falling and liquidation are happening one after another the public is in extreme fear. You know, when everyone is scared like this the market bottom peek. However that does not mean that all the dangers have passed

If you are a trader then you might have noticed there are a lot of short position just above the resistance level. If the market pulls even a little bit upward then these short sellers will get caught and a short squeeze will start asap, so that the price can start rising like sky rocket. That is why it is wise to hedge and not compromise on risk management. Whether the market drop  further or suddenly jumps up  you need to be ready for both situation.