Bitcoin and Ethereum have seen significant gains in the past week, prompting excitement in the market. Bitcoin is up 23% and Ethereum is up 21%, and many other cryptocurrencies have seen even greater gains. The market also saw strong liquidations, with $726 million liquidated in the past 24 hours, with Ethereum and Bitcoin being the highest. However, investors are cautioned to be aware of market fomo, and to invest money they are willing to lose. While there has been good news in the market, there has been no fundamental change, and investors should focus on long-term investment strategies.
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Congratulations on Sticking Through the Bear Market
Crypto is pumping again and if you’re still here, congratulations! You’ve stuck through the bear market and are still trying to learn about the market. You’re the person that your family and friends will come to wondering if it’s the time to buy crypto when we’re up 5x from here. But why are we pumping right now?
Crypto Liquidations and Bitcoin and Ethereum Pumping
In the last seven days, Bitcoin has gone up 23% and Ethereum has gone up 21%. Many other cryptocurrencies have also gone up even more. Crypto liquidations are also coming in really strong right now with 726 million liquidated in the last 24 hours, including 264 million in Ethereum and 232 million in Bitcoin. If you want to trade, some people are saying this is a good time to do so, but always invest money that you are willing to lose. Check out a link to MarGex for trading options underneath the video.
Bitcoin Dominance and Key Resistance Level
This has been a large amount of short liquidations, 477 million coming from shorts and some longs as well. Bitcoin dominance is also going up as we are pretty much straight up over the last week. The next key level is the last resistance we hit before the FTX debacle sent us down from 21,500 down to the 15,000s. Pay attention to about 21,475 or 21,500, as we might just blast right through that again.
Be Careful of FOMO
While it’s nice to see us moving up, nothing has really fundamentally changed in the macro, even in crypto. We haven’t had too much big news, and we have had some legal trouble, such as Gemini and Genesis. As excitement in the market rises, it’s easy to feel FOMO, but ask yourself if you’re investing just because the market is pumping or if there is something that you actually see that has fundamentally changed. Be cautious about investing more heavily than you were a week ago.
Continuous Investment and Taking Profits
If you want to keep your DCA’s continuous, that makes sense, but don’t FOMO into the market and then get flushed out. Staying around as long as possible will give you the ability to invest continuously throughout the market. Consider taking profits if the market moves up significantly from here.
Conclusion
While it’s fun to see the market pump up, be careful of FOMO and invest wisely. Staying around is key, and if you have been DCA-ing, continuing to do so makes sense. Just don’t go in too heavily and risk getting flushed out when the market corrects. Keep learning, stay informed, and invest wisely!
