"The quality of decision-making depends on the information you have and your ability to process that information."
——Founder of Bridgewater Associates: Ray Dalio --(Principles)
Bitcoin's price has experienced significant volatility, undergoing its largest adjustment since the rise after the US election, with a single-day drop of 10.37%. In the past 24 hours, the liquidation amount in the crypto market reached $338 million, with over 129,000 people being liquidated. The popularity of the Meme projects, which had been on fire for several consecutive days, has also declined.
It is worth celebrating that we had already published an article last Friday indicating that Bitcoin's psychological price level of $100,000 was under pressure. Similarly, in yesterday's article (Trader Sean: Bitcoin 'faces adjustment risk this week!'), we gave a bearish outlook for Bitcoin at $98,600, with profits reaching several thousand dollars. As of the publication of this article, Bitcoin has declined to $92,400, touching the support of the four-hour cycle platform, completing a top-bottom conversion pattern.
The current correction of Bitcoin does not require excessive interpretation. As emphasized in yesterday's article, a price drop of 5%-15% during a bull market is healthy for completing pattern repair and liquidating longs. On the macro front, the 'new cabinet' formed by the elected US President Trump holds a friendly stance towards the crypto market. The latest news shows that he has chosen cryptocurrency hedge fund manager Bessenet as Treasury Secretary, meaning the US is one step closer to achieving a national strategic reserve of Bitcoin. The Chicago Board Options Exchange also announced that on December 2 (next Monday), it will launch the first batch of cash-settled index options related to Bitcoin's spot price. Such news is undoubtedly a booster for Bitcoin's prospects.
At the cycle level, a retracement touched the upper Bollinger band support, as shown: the four-hour cycle retracement stabilized at the top-bottom conversion price of $92,600, overall moving steadily upward in a box structure. The top-bottom conversion pattern has been completed, and this round of adjustments has ended. The operation is to buy on dips at $92,600. After the next relay pattern is constructed, Bitcoin's next step will reach a new high, heading straight for $110,000.
The above is just the author's own logic and viewpoint, welcome to communicate and discuss. Creation is not easy, please indicate the source when reprinting, thank you for following the WeChat public account: Trader Sean.
