Bitcoin only fell 5%, while altcoins fell more than 20%. A few days ago and yesterday, we recommended that everyone reduce their positions by 3 layers. Now let's analyze whether the market has bottomed out, as well as the possible trends and response strategies in the future.

First, let's see to which level the market may fall? Let's talk about the support level first. The first support level is 63,000, and the second support level is 60,000. I think that if Bitcoin can be supported at the 60,000 level before the halving, the market may continue to fluctuate around this price. If the support of 60,000 cannot be maintained, then the limit support below is about 52,000.

Next, let's analyze the three major reasons for the market decline:

One of them happened suddenly yesterday:

The panic caused by the release of the halving benefits: Bitcoin's increase was too large, and many people began to take profits. With the release of the halving benefits, selling sentiment appeared in the market.

Economic data in the past month showed that inflation was too high, and the Federal Reserve released news that the three planned interest rate cuts may only become one, and the expectation may be postponed to July or even September. Without a rate cut, the market will face a shortage of funds, and without funds, the cryptocurrency market is unlikely to rise sharply.

Affected by the policy, the US stock market fell sharply, driving the cryptocurrency market to follow suit. In addition, the situation in the Middle East has escalated, and the United States has urgently dispatched warships to take place. Iran may attack Israel as early as Saturday, which has also increased market uncertainty.

The current operation suggestions are:

Reduce 3-5 layers of positions during the rebound, because there may be a second drop, and then wait for the market to stop falling and stabilize before covering the position!

Left-side bottom-picking method: place an order at a very low price, and bottom-pick once every 15% drop, which is similar to a fixed investment strategy.

Right-side bottom-picking method: It is best to wait and see at present, and wait for the market to stop falling and stabilize before entering the market. It is recommended to choose the second bottom-picking method, which is more secure.