Master Chen discusses hot topics:
Due to the end of the pullback and significant rise, everyone has been asking me for my basis, so today I first share why Master Chen expected the pullback to end in the past two days, mainly based on the following points:
Liquidation map analysis: The reduction of long position liquidation in the 92000-91000 range indicates that market support is strengthening; while the concentration of large short position liquidations in the 97000-94000 range may trigger a rebound, especially the shorts around 97100 being hit.
Judgment of support levels: 91600 and 90850 are key support levels near 90,000. Even if 90,000 is broken, these two points are not easy to break down continuously, and a strong rebound is expected in the short term. Even if it falls, the most likely rebound range is between 88800-92300.
Signal of weakened momentum: The downward momentum on the 12-hour level has weakened, indicating that the market is about to enter a rebound phase.
Operational strategy: It is recommended to enter boldly during the pullback, especially within the support range of 91600-90850. You can first establish a position and then add to it based on the market rebound situation, to avoid missing opportunities and control risks.
On the second day after the callback, a large short position liquidation was seen near 97100 on the liquidation map, followed by a rapid market rebound to 97200. This indicates that the market is still under the control of large traders in the short term, and the short liquidation triggered a strong rebound. From this point, it can be seen that combining the liquidation map and technical indicators can more accurately predict market direction.
Master Chen's personal view is that there is often manipulation behind market fluctuations, and the liquidation map can help us capture reversal signals. For example, many friends say they expect a pullback to 80000 or 76000, but I judge that this is unlikely, as the liquidation map shows strong support at higher ranges.
Master Chen combined key information from the liquidation map in his analysis and proposed the following operational ideas. First, the liquidation map shows that the liquidation amounts for long positions at 94552 and 93871 are 100 million and 128 million respectively, while there is 193 million in short position liquidation at 97488.
This indicates that the support near 95000 is strong, and if it breaks, one can position for long in the 94600-93888 area. Especially in the 94600-93888 range, once it pulls back here, there is a great rebound opportunity, with rebound targets looking at 96300-97450.
If the market cannot rise above 97450 next, it may instead test these support areas before rising again. At this point, one can wait for a pullback to this range before entering. If the rise breaks above 97450, then long positions can continue to be held, waiting for higher targets.
The liquidation heat map for the week shows that there will be 224 million in short position liquidations near 100000, which means that when the price rises to this position, short positions will face significant pressure. If the market breaks through 100000, it is expected to continue breaking upwards, potentially with a space of 30,000 to 50,000 points.
Therefore, for short operations, profits should be taken when the market pulls back to 94600-93888, to avoid being pulled by a strong market rebound. The focus of short-term operations is on low long positions, especially after each breakdown of support, one should enter promptly in the next support area to ensure that rebound opportunities are not missed during the pullback.
In the range of 96600 to 97700, we often see market fluctuations, this area acts like a strong correction zone. It often causes the price to linger here for a while. Each time it accidentally breaks through, it will rush to the pressure level near 98200.
This is also an important checkpoint during the rally. If this position is broken, the market will directly turn to the next support point - 98800, and then it may attack the 100,000 mark.
Additionally, tomorrow is the last working day for the end of the month closing. Generally speaking, the end of the month often does not see a significant rally. The market is more likely to experience a pullback, so today's operational suggestion remains to look for long opportunities during the pullback.
Master Chen looks at the trend:
From a larger time frame perspective, the current trend can be seen as a proper adjustment, and the market is expected to continue maintaining an upward trend. Historically, capital inflows into exchanges often coincide with price rebounds when selling pressure reaches its peak.
Resistance level reference:
First resistance level: 97300
Second resistance level: 98500
Support level reference:
First support level: 95800
Second support level: 94900
Today's suggestion:
The previous market rose rapidly, and corresponding adjustments need to be noted. If the price declines, it can be seen as an entry opportunity. When pulling back in the first and second resistance level ranges, it is necessary to confirm whether the trading volume is sufficient to expect further rises.
If it breaks below the first support level, it means the price has fallen below the previous low, and the downward target can be seen at 94.9K, which can also be seen as a short-term entry opportunity.
11.28 Master Chen's wave strategy:
Long entry reference: Lightly enter long at 94900-95350. If there is a pullback to the 94600-93800 range, enter long directly. Target: 97300-97800
Short entry reference: Not applicable
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