I just woke up, opened my terminal, and saw the market glowing red. It turns out there is some big news from Beijing. The government there is cracking down hard on what they call illegal cross border stock trading. Reports say over $1 Billion has already fled from Chinese markets in a blink of an eye.
As a trader, we really can’t ignore macro news like this. It’s not just about the news itself, it’s about where the smart money is heading next.
The Market Is Bleeding Check This Out
Take a look at the Chinese stock market heatmap today. Look at those colors it’s dominated by deep red. The tech and manufacturing sectors are getting hit the hardest. This is proof that the government’s interference is really making investors panic.
S&P 500 and Bitcoin Are Being Tested
If we look at the S&P 500 and Bitcoin, both are in a pretty critical spot. The S&P 500 is trying to hold on, but risk off sentiment from Asia usually spreads to America really fast.
For Bitcoin, I see a Fair Value Gap (FVG) above, and the price is currently stuck between support and resistance. If that support area breaks, we might see a much deeper liquidity flush.
Derivatives Data Who Is Getting Trapped
Don’t just look at the charts, check the derivatives data too. A lot of retail traders usually skip this.
For Bitcoin, the Long/Short ratio still shows retail optimism that might be a bit too early on Binance. Total liquidations in the last 24 hours hit $352.75 million that’s a huge number that keeps the price from moving up easily.
Now for Gold, the Long/Short ratio is at 3.26 on Binance, showing a lot of people are blindly buying in this area. Total liquidations in the last 24 hours are around $12.66 million.
Gold Is Still Fighting
Look at this chart.
Gold is still stuck below the resistance area. People were hoping Gold would act as a safe haven, but it’s struggling because global liquidity is being sucked out and moved elsewhere.
My Opinion?
Honestly, in my opinion, this situation is pretty critical. This isn't just a normal market correction. When $1 Billion can leave that quickly, the market is super fragile. Don’t get fooled by any small pumps; I feel like this is just the tip of the iceberg of a deeper uncertainty.
The market is hot right now, so it’s better to just be patient. Don't fomo into a buy the dip if there’s no clear price action confirmation yet. Lower your leverage. Remember, the market will always be there tomorrow, so just make sure your capital stays safe today.
Stay sharp guys! Do you think BTC will break the support or bounce back?
