Why is the volatility so small after Bitcoin halving? What is the prospect of ETFs? What will be the trend in the second half of the year?
First, I will express my opinion directly: I think Bitcoin will experience a downward shock next, and there may be a good opportunity to enter the spot market in the second half of the year. According to historical data, Bitcoin has experienced three halvings, and each time a bull market started six months before the halving, which is the well-known bull market cycle. Usually, about a month before the halving, the market will enter the late trading market, and after the halving, the market may experience larger fluctuations.
To understand the nature of market volatility, you need to understand that this is the money being shipped. During this stage, many investors may buy and sell frequently, but most will be cut by the market. For traders, this period is very difficult.
You may notice that despite the small price fluctuations of Bitcoin and Ethereum, many investors are reducing their positions rapidly, especially newcomers and contract traders. They are likely to be cut by the market because the market fluctuations are usually large.
My advice is to do as little as possible to reduce the possibility of errors and ensure the safety of funds. For spot investors, choose less than three currencies to avoid excessive risk diversification.
In terms of contract trading, the following five principles should be followed:
1. Try to operate as little as possible, and only make one to three transactions a day;
2. It is better to miss than to make a mistake;
3. Don’t over-trade;
4. Learn to wait for opportunities and protect the principal;
5. Summarize after each transaction and look for patterns.
In layman's terms, do not open a position under uncertainty and wait for the right signal. Risk avoidance comes first, and making money comes second.
So, some people may ask, what will be the impact on the market if the ETF is passed? I think that no matter what ETF it is, the market needs time to digest and balance. Just like the human body, you can't keep eating just because you have a strong appetite, digestion is necessary. We can look forward to future developments, but this does not mean that the market will prosper immediately. Therefore, my point of view is that the second half of the year will be a time to pay attention to the batch entry opportunities after the price falls below $50,000, especially for investors who missed this round of bull market. Although this may sound outrageous, it is an inevitable process for the market to digest the surge.
Therefore, we don’t need to think too much about black swan events, nor do we need to guess whether institutions will let you enter the market at a low price. We only need to pay attention to the healthy development of the market and make our own plans. Do contracts in a bull market and spot in a bear market, master your own layout, and enter the market at the right time.
The bull market is coming, spot and contract carnival feast! Roll funds together, stock up on bull market spot, and share the wealth feast! Nod and follow me, the bull market strategy deployment is revealed, so you can easily master the wealth code! Recruiting fans, I need you, you also need me, don’t be a runner-up in the bull market, let’s revel in the warehouse together! Refuse to be a heavy-weight god, steady investment is the kingly way!
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