BTC
The price of Bitcoin dropped last night, breaking below the BOLL middle track and entering a downward range. From the 4-hour BOLL chart, we can see that the price has passed through the rapid decline range and is starting to show signs of stabilizing.
There are no clear negative news in the market, meaning this drop is purely due to profit-taking pressure from the previous rapid rise. This situation is a normal adjustment during a bull market and will not interrupt our main long strategy.
In terms of price, our long positions are currently near the cost line, and we will wait to add positions after the market stabilizes. Although there was some prior expectation for this drop, it was quite rapid and somewhat unexpected. Our next adding position will be around 91000-92000. If it stabilizes above 92000, we will choose to add positions after stabilization. If it drops below 90000 in a short time (before tomorrow night), we may consider selling some long positions or shorting.
ETH
This drop is mainly due to BTC dragging it down. Before the drop last night, ETH showed an upward trend on the BOLL and had the potential for further rapid increases. ETH officially broke below the BOLL middle track this afternoon, not last night at 8 PM. Historically, once BTC stabilizes, ETH is likely to see a noticeable rebound.
Therefore, at this position, we can choose to continue adding long positions and spot for ETH instead of waiting. From a price perspective, the add position is above 3300. If it falls below 3300 and runs at the BOLL lower track, consider reducing positions.
Altcoin correction operation strategy
We reminded everyone to layout these altcoins at the beginning of the month, mainly including OP, ARB, ENS, LINK, BCH, AVAX, etc. I also bought a portion of SEI, CAKE, BOBA, EIGEN. In this correction, I chose to clear out SEI, CAKE, BOBA, EIGEN, with an overall profit of 40%, consistent with the growth of most altcoins this time, and continued to add positions in OP, ARB, ENS, LINK, BCH, AVAX.
Here I share the reasons for the operations:
We all know there are many types of altcoins, generally classified into three categories: mainstream coins, ordinary altcoins, and junk coins. Of course, classifying by market cap may be more intuitive. Coins like OP, ARB, and ENS have a relatively high overall market cap, and during corrections, their declines are less than that of ordinary altcoins and junk coins, but larger than BTC and other coins. When we are uncertain about future trends, we can choose these coins to obtain enough rebounds or to understand the timing of the market rebound, thus gaining a deeper understanding of the market.
For example, when coins like OP, ARB, ENS rebound significantly, I know the market is up. However, when ordinary altcoins like SEI, CAKE, BOBA, EIGEN rebound, I may not consider the market is up and need further observation to make a judgment.
Additionally, ordinary altcoins and even junk altcoins may not rebound strongly after a rapid decline. This means some may not even return to previous highs or may not rebound at all. Therefore, holding these altcoins for a rebound is not recommended unless you have insider information to avoid the risk of falling into a trap.
Additionally, the mainstream altcoins I selected have not yet reached the high points of March this year. They are currently similar to ETH and are also being suppressed by ETH's movement, making them suitable for holding in the medium term. Even if a few do not perform well, they can still be held, as they are relatively operable. Even if the market judgment is wrong, it will not have a significant impact.
FaC8989889 Let's seize the opportunity of the bull market together and achieve financial progress!
