Advisor Talks About Hot Topics:
Just over the weekend, many fans asked me: "Advisor, is there going to be a major correction soon?" I shook my head at this and thought this is truly a typical portrayal of retail psychology.
Whenever the market rises quickly, people begin to feel afraid. They think that once a certain psychological barrier is broken, the market will experience a significant drop, losing several thousand points.
But in reality, corrections are a gradually accumulating process; where do such exaggerated crashes come from? If you look too pessimistic, you are essentially setting a time bomb in your mind, and it’s unclear when it will explode.
Advisor has emphasized in previous articles that a so-called major correction is not a random event. It requires an accumulation of minor corrections and then a sudden major negative event to correlate.
Currently, the housing market is only undergoing an hourly level adjustment, with small fluctuations and no obvious bearish patterns. So everyone doesn't need to panic; just follow the market rhythm and normally buy on dips.
Every time a new high is reached, adjust your profit-taking point; maintain your previous target during sideways movement, and when it corrects to a key support point, adjust your profit-taking target in time and follow the changes in the market.
Moreover, today, as this month’s final week, there are no particularly negative signals. The interest rate cuts in December and some minor market spikes and fluctuations should not trigger a major correction. So everyone can rest assured; looking back from April to October this year, the market has been fluctuating for so long; prolonged horizontal movement must eventually lead to vertical movement.
The three consecutive monthly bullish candles and five consecutive bullish candles are almost commonplace, and the MACD's upward momentum is gradually increasing; market sentiment is not as pessimistic. If there are signals of a major correction, Advisor will definitely remind everyone to prepare in advance.
Moreover, in Advisor's case, a strict defense is executed daily, and risk control is already very well managed. Therefore, there is currently not much risk, so everyone can rest assured.
As for the market's decline, Advisor personally believes it does not represent a major crisis. The decline over the weekend was actually just some investors exiting, related to insufficient liquidity; after all, the shortage of market maker funds has led to some tension in market liquidity.
However, from the URPD data, especially below $80,000, many profit-taking positions have been gained, and these investors have not shown panic, indicating that the market still maintains a stable state.
Therefore, the overall market has not seen particularly large risks yet; at most, it is just that the FOMO sentiment is gradually dissipating, and everyone's greed has somewhat receded.
In the short term, Bitcoin's correction is generally about 3,000-5,000 points. Why is this the limit? Because the current corrections basically belong to small fluctuations within the daily line. As long as the 4-hour MACD does not break the zero axis, there is no need to blindly turn bearish. The short-term fluctuations in the market can be understood, but if you pursue shorts too much or blindly turn bearish, you are simply asking for trouble. The real opportunity in the market is to capture it under a stable trend, not repeatedly chasing short-term fluctuations.
As mentioned earlier, this week is the last week of the month; it is expected that after Tuesday, the buying power in the market may somewhat converge. After all, the surge on Friday and Saturday has overly excited the market; last night it corrected to 95,800, which is a healthy correction, allowing the market to catch its breath.
If it dips again to the 95,000 mark, as long as it doesn’t break, Advisor will not turn bearish. The 4-hour MACD is already close to the zero axis and turning right; the support level between 96,000-95,800 is still relatively strong, so it is unlikely to encounter major issues.
As for the many fans asking about small cryptocurrencies, it’s best to let go for now. The fluctuations at the end of the month may intensify, especially when market sentiment is weak, so it's better to focus on large cryptocurrencies. Bitcoin and Ethereum are two relatively good choices; even if they occasionally drop below the low point, the market will quickly rebound.
You can also gain quick floating profits during the rebound. Moreover, altcoins have greater fluctuations, and the reaction during corrections is also more intense; if you're not careful, you could get hurt. Therefore, unless you can strictly grasp the trend, it’s best to operate cautiously with small cryptocurrencies.
As for Ethereum, the current technical view shows that the upper edge of the 4-hour central zone is about 3524, while 3600 is just a round number. A daily top divergence signal has appeared, indicating an expectation of ending a certain rebound. Ethereum should still break through the high of 3498 to complete a minor rebound, but if it cannot break through, it will continue to explore the bottom, so everyone should pay attention to changes in structure.
So everyone should not be led by the panic of a major correction; the market is not that apocalyptic. As long as you maintain a clear mind, adjust your profit-taking targets in time, and follow the market trend, victory often belongs to rational and steady retail friends.
Moreover, even if there are some minor fluctuations in the short term, this is just the market gathering strength for a larger rise. So don’t scare yourself, and don't start worrying at the first sign of market adjustment. This is just a process; maintain a stable mindset and follow the trend, and market opportunities will continue to come.
Advisor Looks at the Trend:
The market is still full of expectations for Bitcoin breaking $100,000, but due to the strong resistance at this psychological price point, the price may show fluctuations up and down.
From historical experience, within the range of creating historical new highs, there will usually be a rebound after a sharp drop, so you can look for entry opportunities in the sharp drop range.
Reference Resistance Level:
First Resistance Level: 98,100
Second Resistance Level: 98,500
Reference Support Level:
First Support Level: 97,350
Second Support Level: 96,500
Today's Suggestions:
If Bitcoin can hold the first support level, it can continue to maintain the rebound viewpoint; it is suggested to pay attention to the 120-day moving average trend mentioned by Advisor yesterday.
Although yesterday's important support was briefly broken, a rebound occurred shortly after. The weekend's decline has been partially recovered, and it is currently judged that a short-term low point has been formed.
The rebound viewpoint can still be maintained.
11.25 Advisor's Pre-embedded Wave Band:
Reference for Long Entry: 95,900 light position long. If it touches the 95,400-94,800 range, go long directly. Defense: 94,400. If it briefly breaks 94,400, then reduce positions appropriately, and you can continue to go long around 93,800. Target: 97,350-98,500.
Reference for Short Entry: Not applicable
The content of this article is exclusively planned and published by Advisor Chen (Public Account: Coin God Advisor Chen). Advisor Chen has the same name across the entire network. For more real-time investment strategies, unlocking, spot trading, short, medium, and long-term contract trading methods, operating skills, and K-line knowledge, you can join Advisor Chen for learning and communication. A free experience group for fans has now been opened, along with community live broadcasts and other high-quality experience projects!
Friendly Reminder: This article is only written by Advisor Chen in the public account (as shown above), and the other advertisements at the end of the article and in the comments are unrelated to the author!! Please be cautious in distinguishing between true and false, thank you for reading.
