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Don't remind me again today

Have you noticed that the market atmosphere has become a bit subtle recently?



Just when we were celebrating the expectations of interest rate cuts, we heard that the Federal Reserve might start tapering. It's said that Powell's side is already seriously discussing this matter—first flooding the market to push asset prices up, and now quietly preparing to tighten the faucet. This tactic is actually quite old, but it works every time.

The problem is that tapering is much harsher than simply raising interest rates.

Looking back at historical data, every time liquidity tightens, Bitcoin is basically the first to be hit. Positions with high leverage often have to be forcibly liquidated within 24 hours. Market sentiment? It can collapse at any moment.

However, this time feels a bit different. After experiencing several rounds of bull and bear markets, the resilience of the crypto market has indeed strengthened a lot. The deep involvement of institutional funds has provided some cushion. But we still need to be vigilant.

Speaking of this, the Layer2 sector has generally been a bit weak recently. Take Linea for example—its EMA7 moving average has already broken below a key support level, and the RSI is also hovering in the weak zone, with its trend largely in sync with other Layer2 tokens.

But looking at it from another perspective, this may not necessarily be a bad thing.

Linea is backed by ConsenSys, and the TVL data has remained relatively stable. The ecological construction has not stopped, and the technological advantages are still evident. During market adjustments, it is precisely a good opportunity to test the true quality of projects—those that can withstand the storm often have greater potential for explosive growth in the future.

If we really have to face the tough battle of tightening liquidity, here are a few suggestions:

Control your position well and don't use up all your bullets at once. Keep a close eye on projects with solid fundamentals; coins that rely solely on hype will scatter with a gust of wind. Also, playing with high leverage is really not the right time now.

Only when the tide goes out do we discover who has been swimming naked. Quality assets always become stronger after the storm; this is not just a saying.
BTC-0.12%
LINEA-3.13%
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fren.ethvip
· 11-18 03:50
Quantitative tightening is really a killer move, last time the liquidity tightening caused a huge loss. High leverage is just looking for death, I have cleared everything. Is this a chance to pick up bargains for Linea? ConsenSys's endorsement is indeed confident. Naked swimming will eventually reveal the truth, no rush.
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GasFeeCryingvip
· 11-18 03:50
Is the tapering really here? Damn, the leveraged guys are probably going to take a big loss this time. The Linea technology is indeed fine, but in this environment, who dares to take a Heavy Position? Let's see if we can withstand this wave first. The moment of swimming naked has arrived; quickly recognize whether your coin is actually worth anything. Powell has used this trick so many times, and the market still falls for it. It's really ridiculous.
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GweiWatchervip
· 11-18 03:50
The wave of balance sheet reduction has really come, it seems another batch of highly leveraged individuals will be left behind. It's the same old trick again, the expectation of interest rate cuts feels good for a moment, but the balance sheet reduction leads to a crematorium for a while, which is the Fed's daily script. The technical foundation of Linea is still good, and the backing from ConsenSys is not to be underestimated; during the adjustment period, it is actually a good time to buy the dip. How come high-leverage players still haven't learned? Playing this now is really like looking for death. When the tide goes out, you will know who is swimming naked; this saying holds true every year.
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TeaTimeTradervip
· 11-18 03:50
The move to shrink the balance sheet is indeed harsher than raising interest rates; the historical data speaks for itself, and those with high leverage might have to make sacrifices first. That said, after this round of institutional entry, the market's resilience has indeed strengthened quite a bit, much better than in previous years. Projects like Linea, which have a background, are even more worth buying the dip; only after the storm do we see the true gold. High leverage is really a death wish now.
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GasWastervip
· 11-18 03:24
The balance sheet reduction has really arrived, and we're going to get hit again. Those with high leverage are probably going to have trouble sleeping, right? We've seen a lot of cases where liquidation happens within 24 hours.
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