After the spike by the market maker last night, Ethereum broke 3000, and Bitcoin broke 90000, which knocked down many people's psychological defenses and caused some to cut losses. This is how the market makers operate, drawing one door after another, not knowing how many times they will draw in between, but ultimately, it will go up.
Though it's hard to sift through thousands to find the gold, only after blowing away the wild sand will the gold appear.
Yesterday was a day of starting anew, as some positions were cleared, and some were taken back; this constitutes a new Trade. In this market, perhaps we all need to often 'clear our positions' and then advance lightly to go further.
Bullish Point 1: The Bitcoin holding giant among US listed companies, MicroStrategy, announced last night (13th) that it has increased its holding by 2,539 Bitcoins, with a total purchase price reaching 0.243 billion USD.
Bullish Point 2: At 3:54 AM, a report stated that Trump is expected to issue an executive order related to Cryptos on his first day of office: Washington Post.
This was the earliest news, and then it began to spread wildly in English-speaking areas. Before 4 AM, Bitcoin was still fluctuating around 92,000, but then it experienced a strong rebound, reaching a high of 95050 just before the deadline, an overnight increase of 6000 USD.
Bitcoin market analysis: When waking up this morning and seeing many Vs, I recalled discussing with a friend yesterday about how to close if the daily candlestick closes outside the range. It would not bode well if that happened, and then a spike occurred, bringing it back directly; however, don’t rush, the daily candlestick has closed, but the three-day line has not yet. Each time, it’s celebrated too early, only to end up getting a beating.
Whether the daily level truly broken or falsely broken will be crucial in the next few days, as the daily Indicators have truly been adjusted sufficiently. If it cannot rise in the next few days, it will expand the level, either continuing to drop or experiencing wide fluctuations.
In the 4H level as shown, the drop since the highest point can be seen as a double sawtooth decline. Combined with yesterday's spike, the entire structure is nearing completion. If the adjustment ends, regardless of whether it moves in the X direction or the entire adjustment has concluded, there is only one direction: 97,700 is an observation point, 0.1 million is another observation point, and 0.1 million and 5,000 is the overall observation point for the decline.
The overall market trend must be viewed in conjunction with ETH's separate Post yesterday: falling into the box will be a strong Resistance and a Buy Range, with a good risk-reward ratio. If the entity closes above the upper framework, then ETH can be directly abandoned. It struggled below for three whole months (from August to October) before rising. If it could fall back, it can only be said to be avoided.
The same reasoning applies to SOL, which has fallen to the support level of the major trendline, with a brief dip.
Overall, since a spike has occurred, the overall trading mindset can now revolve around the previous highs and lows, eliminating confusion and hesitation. Still the same statement:
80% of funds should still buy strong leading assets.
20% of funds can be used for continued swing trades.
Keeping 20% is beneficial because swing trades are selected from coins with strong support at the bottom and have stop-losses. In the event of a significant market downturn, only a small portion is lost. This capital can be used to bottom-fish and replenish positions, ensuring profits when opportunities arise.
The first month of 2025 is already halfway through, with the toughest part only 15 days left. February could see a surge, key points to watch: tomorrow at 21:30, USA's December CPI, Japan's interest rate decision on January 24, and Trump's significant fluctuations on November 20, with the challenge being to wait.
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