Weekend market summary:
Yesterday, BTC plunged downward, approaching 53k, and then automatically rebounded to above 56k. The crypto market suffered a comprehensive bloodbath, from the local high of 63.8k on July 2 to the lowest of 53.3k on July 5, the decline in 4 days was only 16%. Compared with the "519" period in 2021, Bitcoin fell from the local high of 59.5k on May 10 to 29k on May 19, and the decline in 10 days was as high as 51%. The decline of "75" (July 5) this time seems insignificant.
Bitcoin is now only one strong support level away from the 50,000 mark, and the short-selling force is still strong. Once it falls below this mark, it may enter the 40,000 range. So, has Bitcoin bottomed out? The answer is no. There will be a long period of bottoming out and seeking support, so even if it rebounds, it may still fall later. In the short term, 58,800-60,000 has formed a strong pressure zone.
ETH has retreated to around 2800 several times. If it falls below 2750, it may further drop to 2300. The probability of this happening is high. In the short term, 3160-3200 has formed a strong pressure zone.
market situation:
The recent market crash has caused many people to react violently, as if the end of the world is coming. People can't help but wonder whether they are investing in Bitcoin or bank financial products. Such an impetuous mentality is obviously not suitable for high-risk markets. It is better to keep the money in the bank, with a stable annual return of about 4%. Some people are even in a panic, thinking that Bitcoin will return to zero in the long run, full of ignorance and despair. This behavior is a typical "leek" mentality:
When the price drops, people panic and sell at a loss, and the more it falls, the more afraid they become; when the price rises, they chase highs and eventually get trapped at a high level.
So, what are the big funds doing now? They are collecting chips. The US regulators and Wall Street are allocating Bitcoin and other cryptocurrencies. Recently, the on-chain project parties of altcoins are also withdrawing coins, and the chips are becoming more and more concentrated. And those "leeks" are panicking and selling, shouting that Bitcoin will return to zero.
Although it is not a good time to increase positions, it does not affect our patience to hold the bottom position and wait for opportunities. The future is bright, but the road is tortuous. No market can escape the weakness of human nature, and only a few people can make money. If you want to get a hundred times or even a thousand times the profit, you must go through the test of the market. Otherwise, how can you have a hundred times or a thousand times the currency?
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
