What's going on moon gang, this video will be a very quick update about what in the world is going on in crypto, because right now, if you haven't seen it, things, are red red red. So in this video i'll be doing my best to explain. What's going on and really be highlighting why i personally believe there's not much of a need to panic and in the long run i truly believe this will actually represent a buying opportunity. So with that being said, let's hop right into it.

So, as you can see here on coin market cap over the past 24 hours, it's definitely been a bit of a bloodbath. Most things are just in the red and if they're in the green, they are barely in the green, almost all the ones in the top 20, and even more than that, it's just so much red things are selling off here's a little bit more of a graphical View bitcoin going from 52 000 down to almost sub 48 ethereum 4120 down to 3800 solana, 205 down to 180 avalanche going from 127 down to 107.. It's just red. The huge percentage dropped, 7, 10, 10, 7, 6, 6.

So many even individual equities, the overall markets spy down 0.08. The queue is down 0.46, the russell down 0.61. My point here is: there's so much red. This was obviously a bloodbath.

Now, there's a lot of rhyme and reason to like, what's going on here and in the world of crypto the tldr, the headline of what's going on over the past 24 hours is leverage, liquidation margin calls people were over at leveraged and they ended up getting caught When there was a little bit of a downturn, crypto futures sees 300 million in losses after spot market drops wow. Let me zoom in just a little bit, so you can see this more easily. A drop in crypto markets for monday evening prompted almost 300 million in liquidations across several crypto futures. More than 109 000 trader positions were liquidated in the past 24 hours.

That was written a couple of hours ago. So since then, even more liquidations, aka margin costs and what's going on here, is in the world of crypto and futures. It's very easy to get what i would consider to be an excessive amount of leverage. So if things go up one percent, you actually get a five ten twenty percent gain, but also that means like it's a double-edged sword.

If it goes down one percent, it's a five ten twenty percent loss and you can actually get anything in between or even more magnitude than that. So basically, when bitcoin ran all the way up here to 52 000. That was natural resistance. I mean look at that's exactly where we got rejected in around december 7th.

We had the cup the handle the rejection um, you can call it really whatever you want, but at the end of the day, 52 is a key technical level and there just wasn't enough momentum to carry it through, so it got rejected there at the key technical Level and then, when it went red, if there was a lot of people were over leveraged, which we obviously knew that there were when it came down. They were feeling this pain to a much greater magnitude than everyone else and when it gets so bad to the point that they don't even have enough money at the brokerage to cover their initial cost. They're going to get liquidated so they're selling more and then all of a sudden. It starts to sell so much that you break through other support and then actually cause causes true capitulation, amongst other people who aren't even leveraged because they're like what's going on.

So they start to panic. Let me continue with this story. Liquidations occur when an exchange forcefully closes a trader's leverage position as a safety mechanism due to a partial or total loss from the trader's initial margin, uh posted spot trading where traders own the actual assets. So once again, they're just using money, that's not theirs and that's why it gets over leveraged uh to an extreme degree.

It's not like one or two x. Sometimes it's easy to find it and like, for example, when you're doing futures or options you can get way more leverage than that. So when it goes a little bit wrong from a financial perspective, it's a lot a bit wrong. Nearly 80 percent of the 300 million.

That's million with an m in liquidations occurred on long positions which are futures contracts in which traders bet on a price rise: crypto exchange, binance, all 119 million in liquidations, the most among major exchanges, wall traders at ftx took a a hit of 78 mil and then Of course, it talks about the hit on ether, which was 57 and then between solana and luna, that was 9 million. The relatively smaller liquidation figures for all coins compared with bitcoin imply recent price searches for soul and luna were mainly driven by spot trading. Just so you know, but overall what happened in the world of crypto today, people were over leveraged and they got caught so right there. Let that be a little cautionary tale to.

Maybe you don't want to engage in much leveraged trading or maybe not leverage trading at all it. It can. When things are good and green, they are very good and they are very green, but that's only half of the coin and when you get to the other half it can be a bloody mess and it can really drag the entire market with it. So using bitcoin as an example - and i think this is best - for maybe the ones in the top 20 top 15 top 10 - not necessarily true for across the board for all crypto, all five plus 6 000 coins and tokens.

But i just want to point out here when this has happened before and trust me. It has happened before when the rsi on the bottom, the relative strength index on the four-hour chart on the daily chart when it goes below 30, that's considered to be extremely bearish. For the past eight nine ten times, that's actually been a very, very solid, buying opportunity. Now it could be a little bit better defined based on your trading and or investing time frame.

But overall, i'm telling you test this out yourself, go to the larger time frame, the four hour the 10 hour every time it dips this low. It ends up correcting from there. I mean there's not many times that if you did that, you would somehow now be at a net loss. Of course, there are counter examples to every rule, but if you enjoy this, especially for the long term and you're looking to dollar cost average, something like that, when there's this much weakness, i like to think of it as you're just shopping on discount and that's exactly What i'm personally doing, especially in some of my favorite crypto projects, so with all that being said, i would love to get your thoughts of what's going on in crypto in a comment below and more specifically, are you panicking? Are you selling, or are you just looking at this as a discount shopping opportunity, like i said, let me know know if you enjoyed this video it'd be awesome if you could drop a like it just helps out with the algorithm and don't forget if you want To join up with the moon gang, all you have to do is hit that subscribe.

Button turn it from red to gray other than that i'll catch you in the next video and as always best of luck in the markets.