Beware of Bitcoin Profit Taking
The U.S. presidential election will soon have a large amount of data released, and as each polling station closes, the market's bets on the red and blue sides will soon be revealed!
1: If Trump is leading and shows signs of a winning chance, the Bitcoin market will further rise, at least emotionally pushing the price to continue to rise. This morning’s increase is the best proof. Moreover, the previous rises in gold, the U.S. dollar, U.S. stocks, U.S. bonds, and Bitcoin to some extent have been based on the belief that Trump’s victory would lead to them rising.
2: If Trump's support rate is not as "far ahead" as the market expects, showing anxiety or trailing Harris, then the previously hesitant profit takers will accelerate their exit. No one wants to wait until the gun goes off to run, which will trigger a profit-taking exit in the short term.
In other words, under the influence of emotions, the price of Bitcoin will experience severe fluctuations in the near future. Both bulls and bears are waiting for the final victor. Even if Trump comes to power, I don't think Bitcoin will continue to rise significantly. Instead, I lean towards the idea that Bitcoin will take the opportunity to suppress high-position buyers, leading to a significant decline before rebounding after washing out the market.
Therefore, at the current price of Bitcoin 71300-71400, I have no reason or intention to chase long positions. I suggest going short at the current price of 71300-71400, with a stop loss at 72300, and a target to be determined.
Furthermore, last night's short position at 70000-70200 gave a profit down to 68700, providing over a thousand points. I have been monitoring and providing alerts early in the morning, making sure to either reduce positions or set a breakeven stop loss, and there have been profits. At least I have always emphasized this kind of operational thinking and methods of reducing positions and moving stop losses for protection.
