$813 million was liquidated in 60 minutes and $1.7 billion disappeared in 24 hours. The main charts I personally look at during volatile times are OTHERS, TOTAL, and USDT Dominance (USDT.D). How to position your portfolio during volatile moments to suit your trading style.
$63,000 profit! David's story is as follows
First of all, I would like to give a big shout out to one of the members of Empire Crypto Trading, David G, for his incredible turnaround. He lost 37,000 USD and went from having 7,000 USD left to 70,000 USD to 63,000 USD. Here's what David had to say:
“This has been an amazing week, in fact the best week of my trading career!” I feel like all my dedication over the past 12 months is paying off. ”
David's results are his own and reflect his dedication and tenacity. His journey is a reminder that trading success takes time and effort, and learning to trade doesn't happen overnight.
Mass Liquidation Event: My Observations
The cryptocurrency market has recently experienced a wave of large-scale liquidations. According to Coinglass, more than 562,000 traders were liquidated in 24 hours, removing $1.7 billion from the market. The largest single liquidation occurred on the ETHUSDT pair on Binance, with a value of $19.69 million.
From what I have observed, these events often occur when the market becomes overleveraged. Indicators such as rising procurement fees and increased open interest can help determine when the market is in a vulnerable position. Although nothing is guaranteed, these signs can help you prepare for potential volatility and adjust your trading strategy accordingly.
3 charts I'm currently paying attention to
TOTAL – Overall picture of cryptocurrency market capitalization
The TOTAL graph represents the overall cryptocurrency market capitalization, or simply put, how much money is currently in the cryptocurrency market. It's clear that the market has gone up significantly, but what many traders don't realize, in my opinion, is the correlation between multiple charts.
On the TOTAL chart, we can see that we have reached a pivotal point in the market – -618Fib extension. This coincides with a major resistance level. Furthermore, the bearish divergence between the wick at the top of the daily candlestick and the CCI indicator suggests that the buying pressure may be slowing down.
Source: TradingView
USDT Dominance (USDT.D) – Follow the flow of money
This chart shows USDT's dominance in the market. When this chart is rising, it often means traders are converting cryptocurrencies to USDT, which can lead to selling pressure.
Recently, I noticed on the USDT.D chart that the price is bouncing off a major support level. For the past 24 hours, I had been predicting a possible push to the upside. Adding further confidence to this prediction was the bullish divergence on both the weekly and daily timeframes. When you combine this chart with the TOTAL chart, you'll gather even more signals that indicate a potential market flash.
Source: TradingView
Others – Altcoin market trends
This is my go-to chart for understanding the altcoin market, excluding the top 10 tokens. We are now seeing a cup-and-handle formation that pushed 92% in November and reached an all-time high in 2021.
However, the OTHERS chart has not completely broken yet. Instead, we are retesting important weekly support levels. This is something we will be monitoring very closely over the next week to see how the altcoin market evolves.
Source: TradingView
How to position your portfolio in a moment of instability
In some cases, a good defense is just as important as a strong attack. Trading is never about guarantees, it's about making the best decisions based on the information available. During volatile times, we base our portfolio positioning decisions on analysis of these charts. What's important to me is to protect what I've built, to be as profitable as possible, and to be ready to adapt to changes in the market.
I've learned over the last few years that staying liquid when the market feels uncertain is just as important as having the opportunity to buy when you find a setting that fits your style. . This approach gives me peace of mind and helps me navigate the unpredictable nature of crypto trading.
Good luck! May the crypto gods bless your trading!
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Written by Matthew Stella. At the time of this writing, Bitcoin was trading at $97,350.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. The author assumes no responsibility for any financial losses incurred as a result of trading or investing based on the information provided. Always do your own research and consult a professional financial advisor before making any investment decisions.
