What Does It Mean to Fall Below (What Is a Sell-Off)?

08/15/2023 20:18 • NFT Newsflash • 115 views

What does it mean to fall below? During market fluctuations, there is often a fall below. For example, we often say that if a currency experiences a significant decline, it will cause other currencies to soar. However, when this trend occurs again, there will be a reversal phenomenon, which is called a sell-off. This means that once the price of Bitcoin falls to a low point, it is easy to form a significant upward trend. And in this case, it will cause a fall below. Therefore, it is more accurate and reasonable to sell off during continuous market volatility.

What is a sell-off?

For many cryptocurrency investors, they face various operational risks throughout the entire process of market volatility. For example, they need to be careful about selling off during the trading process, or pay attention to stop losses when a currency experiences significant price fluctuations. They may also consider selling off a project if its price exceeds a certain position. Sometimes, they may even choose to go in the opposite direction, but this method is not very effective because it is difficult to control these issues through technical analysis.

Let’s first look at what a “sell-off” means and why it leads to such results. When you see a trend line falling, you have a certain number of long or short positions. But when engaging in buying and selling, pay special attention to these two points:

First, be cautious when a market is within an upward channel, as it will experience overbought situations (i.e., a large number of purchases during a market uptrend), which often leads to significant loss of funds (such as BTC/ETH).

Second, during a bull market, it is easy to get trapped due to the critical nature of market trends. Therefore, many people sell off their positions to protect the safety of their assets and then seek new opportunities to enter the market at a lower price and make a profit.

Finally, let’s take a look at the situation of Bitcoin and Ethereum. Bitcoin has been in a steady upward trend recently until last night when it broke through $20,000 and continued to rise, surpassing the $30,000 mark. From the market view, the current support levels are $28,500, $30,700, $32,500, and $24,600.

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What Does It Mean to Fall Below (What Is a Sell-Off)?

What is a sell-off?

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