The market has been fluctuating in the range of 88,000-92,000 recently. Many new friends have sent private messages to ask Lao Li when the consolidation will come out. Here I would like to ask a question to friends who operate short-term, isn’t consolidation a good time to enter the contract? Don’t just covet the big market, consolidation is the most stable way to make profits for short-term operations. Lao Li and his users have made a profit of 2,000-3,500 points recently. Before writing this article, I also made a profit of about 1,400 points. It is also a reminder that everyone must understand what market is most suitable for entry.
On the news level, thanks to the prospect of a more cautious rate cut by the Federal Reserve under Trump, the US dollar index rose for seven consecutive weeks and once stood above the 107 mark. US Treasury yields continued to rebound, and the benchmark 10-year US Treasury yield once rose above 4.5%, hitting a new high since July. Gold achieved its largest weekly decline in three years, hovering near a two-month low. Cryptocurrency was jubilant, with Bitcoin hitting a new high and gradually staying above 90,000. Yesterday, it was mentioned that Trump's allies proposed to sell gold reserves to buy 1 million Bitcoins. Have you ever wondered why BTC, which was once seen as a challenge to the status of the US dollar, suddenly reversed and won Trump's support? Is it just because of the pre-election canvassing? Trump is now gradually implementing his pre-election promises?
First of all, we need to analyze the properties of cryptocurrency. In the eyes of the public, cryptocurrency is a decentralized currency, not a sovereign currency. In Trump's eyes, one of the actual properties of BTC is an asset pool for storing US dollars, and it is an auxiliary tool for the US dollar to maintain its dominance as the world's core currency. Trump's policy is actually to guide capital flows through BTC to avoid capital outflows. With the successive interest rate cuts, BTC prices continue to rise, and high investment returns will attract the attention of capital, which will then flow into the currency circle to further push up BTC prices. This is a snowball. This makes BTC a "barrier" to the outflow of US dollars, and the recognition of BTC will also be gradually increased. The surge in BTC is also an isolated market phenomenon. As the price rises, the prices of assets such as gold and old A have not risen synchronously. How long can the phenomenal performance last? At this stage, the only market that can outperform the US dollar and US stocks is Bitcoin. This situation reflects that the core position of the US dollar in the current international game has been gradually declining, and it also shows that there are not so many conspiracies and intrigues in the changes in the capital market. Simple price fluctuations cannot fully explain the deep-seated reasons behind it. In recent years, the recognition of virtual currencies by countries around the world has been increasing. Do you think it is possible that Trump will really use BTC to pay off the high national debt in the future? Is the promotion of BTC a bigger game? But how will Trump deal with it after a large amount of US dollars really enter the cryptocurrency circle? The cryptocurrency circle is untraceable, so how can new financial crimes be avoided? When the ugly side of human nature is once again revealed to the world, will Trump continue to support the cryptocurrency circle? From a financial perspective, the current growth is indeed beneficial to the later financial situation, but from a politician's perspective, perhaps this round of growth is just a means of governing. Will we become a pawn for the United States to pay off its national debt?
Returning to the cryptocurrency circle, Lao Li personally believes that whether it is the current issuance of Tether, the Fed's loosening of liquidity, or Trump's strategic layout for the future, from any perspective, BTC's long-term rise is a foregone conclusion, but this round of rise is likely to become the financial high point in the history of the cryptocurrency circle. You can look at the trend of FIL, and perhaps the fate of the cryptocurrency circle in the future will be the same. But so far, at least there is still a bull market, so the growth will continue. Spot entry must be cautious now, and try to fight in the form of short-term. The contract can be done in the form of spot, but the spot entry cannot be made at will!
The current short-term BTC price is 91380. The daily RSI index has fallen back, but the price is still in the high overbought zone, indicating the risk of a correction. The 4-hour K-line is low-low-high, indicating that the bullish momentum is still strong. The strong selling pressure near 92000 above is still the key resistance level in recent days. Wait for the price to fall back to 90400-90700 to buy more, 91400-91700 to take profit, and insert a pin to see above 92000.
