As a seasoned crypto investor with a decade of market experience under my belt, I find myself intrigued by the words of Daniel Cheung from Syncracy Capital. His perspective on this cycle’s volatility and the potential for extended “buy the dip” opportunities resonates with me.
A cryptocurrency investment fund leader suggests that traders might have additional chances to capitalize on buying opportunities during this cycle, as a significant drop has occurred in the overall cryptocurrency market over daily price graphs.
According to Daniel Cheung, co-founder of Syncracy Capital, there’s going to be fluctuation within the month, but when temporary drops occur, they are anticipated to present a good buying opportunity for an extended period beyond what people might anticipate.
Traders are ‘constantly looking to take profits’
During this current period, traders seem to have adopted a more short-term approach, regularly aiming to cash in on their gains, as stated by Cheung. Over the last day, the combined value of all cryptocurrencies has decreased by approximately 5.41% to reach a total market cap of $3.44 trillion, based on data from CoinMarketCap.
In my recent analysis, published on December 9th, I, as a researcher, noticed that certain altcoins which have shown substantial growth since October, have experienced a steep decline today, according to the findings of Santiment, a renowned crypto analysis firm.
In the list of the top 100 cryptocurrencies, Kaia (KAIA) experienced the most significant decrease at 31.33%, followed closely by Stellar (XLM) with a 28.31% loss, and Flare (FLR), which saw a decline of 26.87%.
Santiment pointed out that hasty selling by retail traders due to fear might ignite a swift rebound.
“Expect a swift rebound to assets like TRX, AVAX, DOT, ICP, POL, FIL, and TIA.”
According to Swyftx’s lead analyst, Pav Hundal, the recent downturn in the cryptocurrency market seems temporary, as he stated, “It appears more like a brief interruption.
“Traders were piling into leveraged longs before the smash. As soon as spot market liquidity melted away, they were in trouble.”
Over the past 24 hours, highly leveraged long positions appear to have experienced a catastrophic collapse similar to a mass extinction in the financial market,” he explained.
In the last day, it’s been estimated that around $1.58 billion worth of long positions have been closed across various cryptocurrency markets, based on data from CoinGlass.
It is ‘extremely difficult’ to time the crypto market
Cheung said that “timing markets are extremely difficult.”
“In prior cycles, participants largely engaged in a hodl and buy the dip mentality,” he said.
Cheung stated that predicting market timings is incredibly challenging, and the widespread belief among people that they can accurately determine the peak of the current cryptocurrency trend makes him think that this upward trend could persist for a significantly longer period than initially anticipated.
According to Bitfinex’s analysis, the upcoming drops in Bitcoin price might not be as severe as the 10% decrease witnessed last week, given that the selling pressure has noticeably decreased following Bitcoin surpassing $100,000 for the first time.
Given the drop in earnings and demands from market analysts (sell-side), we anticipate that any further decreases won’t be as steep as the one witnessed recently, according to Bitfinex analysts, stated on December 9.
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2024-12-10 09:17