Behind the 150,000 People Liquidated: Why Do We Keep Repeating the Same Mistakes?

Today’s hot topic on Gate Square directly targets a “bloodbath”: the crypto market is falling, and 150,000 people have been liquidated. Every time I see this number, I can’t help but ask: why are the ones getting hurt always the same group? From the perspective of trading psychology, this drop has once again exposed three fatal operational mistakes.

Mistake One: The deadly combo of chasing highs + high leverage. Before the decline, BTC had been gradually climbing from around $70,000 to above $80,000, leading many to develop the illusion that “it won’t fall.” They rushed to open 5x, 10x, or even higher leverage to go long. They forgot that the standard script is a sudden sharp drop after consolidation or slow gains—an orderly setup to selectively liquidate leveraged long positions. Of the 150,000 people liquidated, the vast majority are longs.

Mistake Two: Treating “adding to losses” as “averaging down.” After BTC broke below 78,000, many people’s first reaction was not to cut losses, but to immediately add to their position. If their direction judgment is wrong, this kind of action only makes their position heavier and their losses bigger. The right approach is to preset the price interval for each add-on and a total stop-loss line, rather than “buying more the more it falls” based on emotion.

Mistake Three: Ignoring the cumulative risk from the macro picture. The first issue discussed in this round—geopolitical risk—is a typical “gray rhino.” Rumors that the U.S. and might restart military actions against Iran have been around for a long time, but most people choose to ignore them, immersing themselves in optimistic narratives about a technical bull market. When the negative developments are finally realized, the market often has already accumulated too many fragile long positions.

So, is the current drop panic-driven, or is it a bargain-hunting opportunity? My answer is: for leveraged traders, it’s panic; for spot holders who plan to hold long term, it’s an opportunity—but an opportunity doesn’t mean you should buy immediately. I’m more inclined to wait for two signals: first, at the hourly level, there’s a period of increased volume along with long lower wicks (commonly called a “needle”), indicating that there are funds willing to take it; second, volatility starts to narrow, and the candlestick body becomes smaller.

In terms of execution, I will put 10% of my long-term position funds on a “bait order” at $75,000, and use the remaining funds to wait for a clearer bottom structure to form. Remember: in this market, living longer matters ten thousand times more than making quick profits. People who get liquidated don’t lose to the market—they lose to their own greed and impatience.
#加密市場下跌15萬人爆倉
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