Believing that the price of Bitcoin would drop this week, Korean youtuber Satto Live lost nearly R$5 million as bitcoin jumped to US$26,000 this Tuesday (14).
According to data appearing on his screen, Satto took a short position when Bitcoin was trading at US$21,417, i.e. on Sunday (12) or last Thursday (9).
Your point of view is justified. After all, there were several reasons why Bitcoin had fallen to $20,000 and the banking crisis had not started yet. However, the youtuber made the mistake of not using a stop loss and as a result lost the entire amount invested.
Youtuber relied on $25,000 resistance, but it has broken
Korean youtuber Satto is already a well-known figure in the market for his millionaire losses in cryptocurrency trading. For example, last year it lost 800,000 BRL in one operation while operating with high leverage.
All this Tuesday (14) Satto lost even more money in the cryptocurrency market. Believing that the bulls would not break the $25,000 mark, the youtuber did not even use a stop loss in his operation.
As seen in the video below, the bulls not only broke the $25,000 level, but took their price above the $26,000 level, liquidating the Korean trader’s nearly R$5 million position.
In response, the youtuber simply raised his hand to his head, as if trying to hide from his audience.
Despite the loss of millions, Satto remained calm, perhaps because he was used to losses of this magnitude. After all, on another occasion, the trader lost BRL 2 million while trading long and the market was in a downtrend.
Bitcoin leverage is dangerous
As can be seen, Satto is a trader who likes to work with leverage. While the technique can be used to deposit fewer bitcoins into the exchange while the rest remains in your wallet, using leverage can be dangerous.
After all, Bitcoin’s four-day rally of 34% would liquidate leveraged positions in just 3 times. The same goes for long positions, as Satto himself has proven in previous trades.
Therefore, such a volatile and aggressive market does not even need leverage to make a profit. Finally, using a stop loss is also great for avoiding full liquidations like the one from the trader above.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
