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I'm Ivan and welcome to my weekly column Mad Crypto Alpha.
Some people want to build the "future of finance," but I just want to help you make money in crypto.
Each Sunday, you get weekly insights the news does not cover but you need to know about.
So you're not just entertained by crypto but get the alpha behind the story.
In this week's issue:
- Who got liquidated again and why?
- What is the right investment mindset?
- What should you expect from the market?
I’m Liquidated Again … Says Guy Who Swore Off Leverage In January
Here we go again with Tarded Degen Gambler:
By his own account, he went from $340,000 to $70,000 in one week.
Back in January, Mr. Degen Gambler had already lost $250,000 and had sworn off leverage after getting a hairdryer treatment from PC Principal (…”stop being a f–ng gambler and start acting like an adult.”).
He went on a 2.5X leverage long on Solana SOL/USD with “literally every single cent” at an average price of $172 and a position size of $700,000.
Lo and behold, on Saturday evening, Iran decided it was time to retaliate against Israel and altcoins decided it was time to retaliate against over-leveraged traders, sending Solana as low as $125 and the position of our protagonist to zero.
He was not the only liquidated trader during this hefty altcoin correction.
So, how should you be approaching the markets?
Read Also: 14.8 Trillion Shiba Inu Tokens Liquidated In Just 24 Hours Amid Market Downturn
How To Build A Position: ‘You Will Have Far More Time Than You Anticipate’
Even before the fear of an all-out war in the Middle East, markets were looking shaky. Pentoshi was prescient in his April 12 call that alts were about to fill their wicks to the downside:
The dollar has been strengthening off the back of the uncertain geopolitical situation and crypto does currently not look in the mood for a strong upside rally.
The best thing to do at the moment is … nothing:
Markets rarely give you just one chance to enter. Many traders (or investors) have been punished for being impatient because, as the experienced ones know, the market is transfer of capital from the impatient to the patient.
The consensus among the veteran crypto traders is that the second and third quarters could be a grind and that you should look out for summer lows.
So, what to expect from the market in the coming weeks?
Read Also: Amid Dogecoin Crash, 374 Million DOGE Moved From Robinhood To Unknown Wallet
The Market Now: ‘Just Survive And Hold Your Spot Positions’
Saturday’s news was so significant enough that the Michael Jordan of cryptocurrency trading interrupted his social media retirement:
GCR is a legendary cryptocurrency trader who bought the famous dogwifhat meme as an NFT.
As shaky as Bitcoin BTC/USD might look — and let’s be honest, we are only down 20% from the all-time high — buying when others are fearful has always been a solid strategy.
Pentoshi also sees a “potential bottom” that he started scaling into.
Could we go lower from here?
Absolutely.
Is this a good spot to start getting allocated?
The veterans think so.
Should you be ready for a move in any direction?
You bet.
But I tend to agree with the traders that this market still has some more bullets to fire, even if not right now.
Wrapping It Up
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Shoot me a DM or Benzinga a mail if you have topic requests, and I'll see you back for next week's Mad Crypto Alpha.
gn
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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