Weekend market summary:
After Bitcoin fell below the yellow line, it retreated and failed to break through the waistline near 57,800 twice. There is an expectation of a head and shoulders top (unconfirmed), but we have to guard against a second test.
- Dabing recommends to directly place a protective short position overnight. If it breaks through and stabilizes at 58,000, the protective short position will automatically narrow the loss
- Copycats also have the risk of pullback and second exploration. It is recommended to close the position with one click or take profit at half the cost to ensure profit.
Today's hot market news: The 7.5% drop in the cryptocurrency market was actually caused by China? Let's take a look at what happened.
On July 5, the cryptocurrency market experienced a bloodbath. The price of Bitcoin dropped by $6,000 in an instant, and the currency circle was wailing for a while.
According to a trader, the main reason for the sharp drop was that in a panic-driven environment, the Chinese government took the lead in selling, followed by a series of negative news such as whale sales, German selling, and Mentougou repayments, which led to a flash crash in the cryptocurrency circle.
It is understood that the tokens sold by the Chinese government this time are bitcoins seized from the PlusToken case, totaling about 320,000 coins, some of which have been sold earlier, and it is estimated that there are 250,000 to 300,000 coins left to be processed. Currently, 200,000 coins have been processed, and there may be up to 90,000 coins left to be sold.
The sell-off was described as "conducted in secret". In the name of technical services, the tokens were entrusted to several companies in Beijing and Zhejiang for sale. After the processing was completed, the companies declared and remitted the tokens into the country in the form of foreign exchange in accordance with the entrustment agreement. The execution company took advantage of the panic and shorted the market at the same time, choosing to sell off on a large scale when the price of Bitcoin reached $60,300 yesterday. This move caused the price to fall below $60,000, triggering a wave of selling by large investors.
Cryptocurrency market rebounded? What to do now?
Currently, all coins have rebounded well, but there are still 7 billion in funds to be allocated in the Mentougou wallet address, so it is not the time to be blindly optimistic.
Although I am still optimistic about the future of the cryptocurrency world, for risk control considerations, I would like to take advantage of the rebound to gradually reduce the positions of some of the coins we bought at the bottom before, switching from high multiples to low multiples, or exchanging small coins for spot.
And before the crash, I didn’t ask everyone to clear their positions, and pushed the margin call line below 52,000. For those who have extra money, I let you buy at the bottom, especially with the good news of Sol. Fortunately, the market did not go down in the end, and it rebounded. It can be said that it was a safe bet.
Finally, I still want to give you a word of advice. When buying at the bottom, don’t be greedy for multiples. Don’t let greed ruin you. Do a good job of risk control. As long as the position is maintained, things will pick up later.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
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