Bitcoin shock period: Will the future trend rise or fall?
Bitcoin has recently entered a range shock mode. Will it rise directly or fall quickly? Before trading, it is crucial to figure out the trend direction! Many people only rely on technical indicators, but ignore trend analysis. Doing so often leads to heavy losses or even liquidation when the market reverses.
Reasons behind the current shock
After Bitcoin fell to $90,000 recently, it entered a small range shock. Unlike the previous unilateral rise, this shock pattern shows that the main market players are deliberately creating uncertainty. In this way, it is not easy for bulls to make profits, and bears are constantly "exploded". If it rises directly, many profit-taking orders that have not been exited in time will choose to sell near the $100,000 mark. Although the shorts are cleared, the bulls make more profits. This is not cost-effective for the main players, so they choose shocks to force shorts.
Possible trend: Test the $100,000 mark again
According to this shock trend, Bitcoin may test the $100,000 mark again. For trend traders like me, this will not affect the operation, but it is a good opportunity to short at highs. Although Bitcoin has the potential to rise to $100,000 or $150,000, the market needs to experience a sharp correction before that to clear the bubble.
Just as the real estate market would have collapsed without intervention, the cryptocurrency market will sooner or later return to rationality without government intervention. Therefore, Bitcoin is currently too expensive, and over-hype needs to be cooled down by a "black swan" event.
Opportunities and layout
The key to this bull market is to seize the opportunity after the big drop and make a reasonable layout. Through this adjustment, the asset has great potential for appreciation, and a 3-5x return is entirely possible, which is better than most market participants.
Operational suggestions
- Short on highs: When Bitcoin price breaks through $99,000, you can consider shorting.
- Profit target:
- First target: around $93,000
- Second target: around $90,000
- Third target: around $87,000
Let time verify the effectiveness of these operation strategies.
