Bitcoin surged yesterday, reaching a historic high! It made the first test, which is a good sign of over-expectation. With the U.S. elections approaching, Trump is likely to win, and while a rise was anticipated, the continuous surge was unexpected and really strong!
In the previous article, I mentioned unexpected adjustments to trading strategies, with funds increasing positions and setting the liquidation price at 75,000. For those without funds, opening long positions to raise your liquidation price. Many might be curious why not set stop losses; the core of trading has several points, and it's crucial to learn to set stop losses. However, in the crypto world, if you still have this mindset, it can only be said that you are dull-witted and inflexible; traders who lack adaptability are just relying on luck.
In the crypto market, almost every time there is a market shift, it is accompanied by spikes. May I ask how you set your stop-loss prices? Is your long position stop loss set at the previous support level? Is your short position stop loss set at the previous resistance level? Reviewing past Bitcoin price trends, every spike can easily trigger your stop losses, so what's the point of trading?!
Many people think they're very skilled at ultra-short trading, but I haven't seen anyone who can consistently profit from it; they just oscillate between gains and losses. Ultra-short trading is really not as good as trading gold.
The most suitable trading strategies in the crypto world are trend trading and long-term operations; other methods waste energy without necessarily yielding results. This is a different story if you have plenty of time and money to waste.
Bitcoin made its first test of the historical high last night, and we will see if it can stabilize above 71,000. If it stabilizes, a second test is likely. For those who are not currently trading, now is not a suitable time to act, as it is full of uncertainties. If it cannot hold, the first target is around 68,000, and the second target is around 65,000, which is higher than the previously predicted retracement points.
The second image shows my current position; trading is not gambling, and you must not have an all-in mentality. You need to leave yourself an exit, such as in position management, and you must be well-prepared for the unexpected. I've chosen to activate reserve funds to increase positions; although such occurrences are rare, it does not mean they won't happen. I said that before the real bull market starts, we still need one big drop; let's wait and see!