Bitcoin is currently back to the volatile area near 100K, in line with our previous expectations. Next, until the Federal Reserve interest rate meeting at the end of the month, the market is likely to remain volatile, and a clear trend direction may not emerge until the end of the month.
Judging from the current situation, the Federal Reserve is likely not to cut interest rates again, which means that Bitcoin may face a greater risk of a correction. Therefore, it is recommended to do a good job in risk management to avoid the impact of tail risks.
The volatility of Ethereum and Solana has decreased significantly, making now a good time to close your positions and lock in your profits. If you plan to open a new position, it is recommended to wait for market volatility to rebound before entering, focusing on opportunities in March or beyond.
If you are looking to position your position in late January or February, lurking in some bear spread trades may be a good option.
Despite the current market pullback, there are still opportunities to make profits, and hopefully the pullback will remain healthy and reasonable.
If the Fed does stop cutting interest rates and the stock and cryptocurrency markets continue to rise, then we may enter a bubble phase, where continuing to sell call options may be a smart strategy.
In short, it is still necessary to respond flexibly, and technical indicators such as volatility and gamma levels can often provide effective market signals.
