BTC retraced to the 5-day line again over the weekend. This time, it returned to the 5-day line of 97.1k after hitting a record high of 99.6k yesterday. Since the Trump market started after the US election on November 6, this is the second time that it has officially retraced to the 5-day line, and the decline from the high point before the retracement is about 2.5%. The last time it retraced to the 5-day line was ten days ago on November 14-15. The record high created at that time was 93.2k, and the 5-day line that was retraced was at 87.9k on November 15, so the decline was about 5.7%.
Bull market has more retracements. In the historical BTC bull market, a 30%-40% retracement in the middle is normal. If it is a rebound from $100,000, a 30% retracement will have to go to $70,000, and a 40% retracement will have to go to $60,000. Please note that this is just an example, and it does not mean that it must be killed at $100,000. It is also possible to pull up first and then kill.
It mainly depends on how much benefit there is in killing, that is, how much long leverage can be blown up. The more it blows up, the greater the benefit. In comparison, the two small callbacks mentioned above are simply not worth mentioning. So the effect of washing the market is also limited. The most fundamental reason is that it is likely that the long leverage has not actually kept up. The institutions that came in are all learning the kind of over-the-counter zero-interest leverage that Micro Strategy has done, and the killing in the market can't kill it at all.
