“Change is inevitable and adapting to change is the key to success.
——Bridgewater Associates founder: Ray Dalio (Principles)
The pressure on Bitcoin is increasing and it is being squeezed. When the price hovers at the psychological resistance level of $100,000, the market shows extreme greed. The fear and greed index has risen sharply from 83 a week ago to 87. This sentiment usually indicates that an adjustment is about to occur!
Looking back at last week, the two texts and accompanying strategies released on Thursday (Trader Sean: Bitcoin bull market is far from over, it will hit $98,700 in the evening) and Friday (Trader Sean: Bitcoin is soaring, the "time has come" for a short-term sniping of the $100,000 frenzy), made it gratifying that Bitcoin rose from $96,700 to $98,700 last Thursday, and fell from $99,500 to $97,100 on Friday. For two consecutive days, the ideas gave a profit margin of more than $2,000.
Over the weekend, the price of Bitcoin fell below $96,000, hitting the 2-day MA5 support. Taking advantage of the positive rebound of the passage of the Bitcoin Bill of Rights in Pennsylvania, the price of Bitcoin returned to $98,600 at the time of writing. With Trump's election, the possibility of implementing tax relief policies will affect the demand for treasury bonds. If spending fails to decrease accordingly, the fiscal deficit may expand and the treasury bond market will face greater pressure. Therefore, in an environment of high inflation, investors are more inclined to turn to hard assets such as Bitcoin. Overall, with multiple positive factors and a strong market, the cryptocurrency market will remain in a bull market for a relatively long time in the future. It is worth noting that the bull market is not a unilateral straight-line rise, and a 5-15% price drop can be regarded as a normal and healthy correction. This week, facing the monthly line change, there is no scheduled news, and the price falls below the upward center, which is a good opportunity for adjustment!
In terms of form, as shown in the figure: the four-hour trend is running intact within the upward channel, and the overall pattern is oscillating upward. After breaking through the center at the weekend, the top and bottom conversion was completed. As the disk runs, the central price has reached US$98,500.
November 25th suggestion:
Bitcoin (BTC): Currently shorting around $98,600, target $95,800
The above is just the author's own logic and views. Welcome to exchange and discuss. Creation is not easy. Please indicate the source for reprinting. Thank you for following the WeChat public account: Trader Sean
