Thread by @dilutionproof

1/6 During yesterday's mini-dip, I saw unrest in my feed & some people were pinging me if I was still bullish on #Bitcoin

To me this was nothing but another shake-out of weak hands and leverage, while nothing changed regarding the big picture 🤷‍♂️

A short 🧵 on (not) getting rekt

2/6 So, what happened?

Simple: as soon as #Bitcoin set a new local high and dipped a bit, there was a steep uptick in people aping in long on leverage again 🦍

As always, this is a recipe for getting rekt - which is exactly what happened a few hours later 🤦

3/6 Meanwhile, there were large stablecoin inflows to exchanges and large #bitcoin outflows from OTC desks - both signs that there is some serious dip buying going on

"Thanks for the liquidity, (rekt) apes!" 🐳🎩

4/6 During this dip, the average coin dormancy decreased (a bit), which means that relatively young coins made up an increasingly large part of the on-chain volume

Another sign that it was particularly the less experienced market participants that were triggered by the dip

5/6 The irony is that if you zoom out (even just a little bit), none of this was a big deal at all 🤏

Unless you're an experienced, professional trader that consciously chooses to trade small timeframes: zoom out & slow down (lower your time preference)

6/6 That is why I am personally not looking at intra-day charts and on-chain flows but particularly focus on the larger (4-year) market cycle

If you're curious about my current thoughts on the bigger picture and why I am not worried, this 🎩 might help:

https://twitter.com/dilutionproof/status/1390994566686314496