The world is bustling with people, all for the sake of profit; the world is bustling with people, all for the sake of profit! Hello everyone, I am your friend Lao Cui Talking about Coins, focusing on digital currency market analysis, and striving to deliver the most valuable currency market information to the majority of coin friends. Welcome all coin friends to pay attention and like, and reject any market smoke bombs.
After waking up, I witnessed the failure of the market to hit 90,000 again, and the Asian session fell into the callback stage again. I still haven't seen the callback depth below 80,000. Fortunately, the overall callback trend is still under control. You won't enter the market during Lao Cui's rest, right? Before going to bed, Lao Cui also made up a long order in the market. Fortunately, he perfectly triggered the stop profit after waking up. The depth of the callback in the middle, Lao Cui also suffered a lot. Fortunately, he didn't watch the market. Although he finally exited with a stop profit, the danger was also very scary. Reviewing yesterday's trend, the overall callback depth reached around 5,000 points, the growth reached 10,000 points, and the callback was nearly 50%, basically declaring that the depth of this round of callback has reached the demand for growth. These two rounds of trends have completely driven the activity of Bitcoin. The 24-hour trading volume has reached nearly 200 billion. The goal of the banker has been successfully achieved, which can be regarded as attracting the attention of some large funds. From the side, it can be perfectly seen from other currencies that the short board of the currency circle is that except for Bitcoin, other currencies are basically motionless. Even if there was an increase, it returned to the growth position yesterday.
What was said in the previous paragraph basically reached Lao Cui's early conjecture. The depth of the callback under the sudden pull has been digested by the market. At this stage, the focus will return to whether Bitcoin can stabilize at the 90,000 mark. The 10,000-point sudden pull market is a forced short market, and the short-sellers' income is basically satisfied. In the remaining time period, the Asian session will pull back and the European session will digest the growth, and there is a high probability that it will revolve around this trend. Secondly, the points that many friends are concerned about are nothing more than the halving effect of Bitcoin and the recent increase in Tether. Lao Cui actually discussed these two points with everyone in the first half of the year. The short-term halving effect will cause miners to panic, and a large number of Bitcoins will be sold, causing a short-term decline. However, in the long run, as the difficulty of mining increases, it will also make Bitcoin more scarce, which is a favorable situation in the long run. Moreover, half a year has passed since the halving, and most of the Bitcoins in the hands of miners have been basically digested by the market. Miners' profession does not rely on market growth to make a living, but more often they will sell when there is profit, so miners do not account for the proportion of the currency circle as dealers.
In general, the effect of halving is basically in line with the market trend at this stage, and will further boost the growth of Bitcoin. As for the issuance of Tether, Lao Cui also paid attention to the overall flow. All major trading platforms have basically gained something. The place with the most inflow during the period is Binance, and the inflow directly intervenes in the market. This round of Bitcoin's upward movement of 10,000 points is inseparable from the issuance of Tether this time. The issuance of additional currency will cause inflation in any market, and the same is true in the currency circle. However, the current use of Tether is considered to be the circulating currency in the currency circle, so its issuance will definitely cause the growth of other currencies. Don't think that this round of growth has too much bubble flowing in, and it will sooner or later cause a large number of declines. This has also become the key point of the short attack on the bull market. Lao Cui's point of view is very clear, that is, when the bull market comes, try to be long-oriented. The callback during the Asian session is to give everyone an opportunity to enter the market. As long as there is a new callback low, everyone can intervene in long orders. For Bitcoin, the amount of funds flowing in can support the current price, so don't be blinded by the bubble. This round of growth will not end for the time being.
The issue that everyone is more concerned about is the depth of the later callback. Yesterday's callback was not the deep callback before the interest rate cut from mid-month to December that Lao Cui had guessed. Yesterday's callback depth was purely a normal callback depth. This is a market behavior, not a man-made disaster. The real callback depth must be based on the problem of capital volume connection, resulting in a large amount of capital flight, the market will decline with the trend, filter out the funds of retail investors, and then return to a high level again, resulting in the reality that only the dealers are full in this round of rise. From this perspective, what you need to do is to wait for a deep callback to bottom-fish. Don't think that a deep callback is the end of the bull market. This idea will hurt everyone. Lao Cui's response is also very simple. At this stage, the short orders are not moved, and the short profits are never taken over. As long as the short orders cannot trap the funds in hand, the long returns must be higher than the short orders. Lao Cui will still study the later practices in the near future. After the callback, the idea of long orders will continue. So if you don't understand this aspect, you can ask Lao Cui.
The problem that everyone is currently worried about is whether the interest rate cut can continue. According to the previous financial thinking and Trump's approach, there will be basically no big deviation on the issue of interest rate cuts. Our long-term thinking is almost to continue the interest rate cut trend to enter the market. Trump is a person who has great resentment towards the Federal Reserve and has criticized the Federal Reserve's interest rate hike strategy more than once. Everyone should be clear that the Federal Reserve has the final say on interest rate hikes and cuts in the United States, and the Federal Reserve is an organization independent of the American government and is more like a private enterprise. Therefore, the overall strategy and policy will hardly deviate too much from Trump's thinking, and Trump is a person who is extremely opposed to interest rate hikes. When he was in office, he was a politician who created a 50 basis point interest rate cut. Although there are still a few months before he takes office, the current trend is also in accordance with Biden's governing ideas, but we have to consider Trump's future policies.
Combined with these interest rate cut ideas, there is no reason for Bitcoin to go down at this stage, and the bubble problem of the US dollar is getting worse and worse. The US wants to maintain the hegemony of the US dollar, and the currency circle is indeed a good track. This also explains why China and the United States are the largest holders of the currency circle. Trump's views on the Federal Reserve are extremely important. He is a person who has the idea of using interest rate cuts as his own tool to realize the implementation. We are not discussing the issue of interest rate cuts, and the implementation of interest rate cuts will definitely cause the growth of the currency circle. It is very likely that the current price of Bitcoin will still be low next year. What we have to do is not to eat up all the growth of this bull market. Eating up half of the profits is already a success. At least our spot users have eaten up nearly 15,000 points. As for contract users, they are basically maintained at around 10,000 points. This idea has brought us huge benefits. Lao Cui is satisfied with this operation. Even if we don't pursue the remaining profits, it is a perfect answer. For Lao Cui, the remaining time period will consider everyone's risks to operate.
At the end of the article, Lao Cui would like to remind all users with insufficient funds that you can look at the profit of the cottage and even hold the cottage currency, but it is not recommended that you do small currency contracts. For a position of about 5000U, just focus on Ethereum and SOL, or even less than that, just do SOL. It is the right way to accumulate your capital successfully first, and then consider enlarging your position. Remember not to start with small currency contracts, especially users who have not been exposed to other investment markets before, don't even touch the contract. The contract is a market that requires capital support, not a market where everyone can simply cover its risks with a small investment. This bull market is an opportunity for small capital users to accumulate original capital, not for everyone to cross the class ladder. If you want to cross the class, you must have sufficient financial support. Considering risks first and then benefits is the underlying logic of the financial market. Lao Cui has explained the future trend very clearly. Today’s Asian session will be an opportunity for everyone to enter the market. If you can’t grasp it, just ask Lao Cui. That’s all I have to say. Lao Cui is going to chat with other users. See you tomorrow!
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Lao Cui’s message: Investing is like playing chess. Experts can see five, seven or even more than ten steps ahead, while those with low chess skills can only see two or three steps ahead. Experts consider the overall situation and the general trend, and do not focus on one piece or one place. Their goal is to win the game in the end. Underachievers fight for every inch of land, frequently switch between long and short positions, and only try to win in the short term, resulting in frequent setbacks.
This material is for learning reference only and does not constitute buying or selling advice. If you buy or sell based on this material, you will be responsible for the consequences!
