June 8, 2024 Grandpa checks in
In the early morning, Bitcoin suddenly fell, leading to a 20-30% plunge in the market. According to Coinglass data, the entire network had a liquidation of 416 million US dollars in the past 24 hours, of which 360 million were long orders. Bitcoin fell from the highest point of 72,000, and the lowest point just broke 68,500. In fact, it was only because of the failure to break through the pressure level that a wave of decline came. In my opinion, this decline is a normal retracement after the failure. The price of the copycat pin is lower than expected. Judging from the results, this wave of market conditions must have seen a series of liquidations. The previous sideways trend for too long and the bullish sentiment generated by the Ethereum ETF caused a wave of air strikes on leveraged bulls.
I have repeatedly warned of the risks at the pressure point in the past few days. At present, the stop-profit and prevention measures at the pressure point are in place. However, I am not taking credit for it. After all, before the retracement, no one can predict whether it will be a breakthrough or a decline. It is just that from a probability perspective, this part of the moving positions has won temporarily. However, there is no need to worry about the long-term positions. The ETF of the big cake has continued to have net inflows, and the strength of the retracement is relatively limited. If there is no big drop in the next few days after this wave of retracement, it will continue to try to break through the pressure.
Objectively speaking, this kind of market is actually quite difficult to do. There is no breakthrough or crash. If you only do swing trading, it is impossible to catch all the ranges. It is even more unrealistic to play swing trading with full positions. Therefore, even if you make a profit, it is just a small one. If the market fomo sentiment is high, even if we don’t have enough positions, we can still play arbitrage with new stocks, and the yield rate will be off the charts, or there will be a big crash. We can buy the bottom when the market is sideways, and it is not difficult to get a long-term profit of several times. If the market continues to go sideways, then we can only continue to do some small swing trading.
As for the next trend, since there has been a wave of decline, we should be more vigilant about the risk of further retracement in the short term. Considering that the decline is not large, especially for Ethereum and Bitcoin, if the market really has a strong demand for a retracement, this decline will definitely not be enough. Of course, the risk is mainly short-term. If there is no further decline in the next week, the subsequent market will continue to be bullish. $ETH
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