This week, BTC experienced a wave of adjustment, retreating over 8300 points from a high near $99,000, once approaching a strong support area of $90,000~$90,500. During the decline, many altcoins followed suit, and the total market value of cryptocurrencies evaporated by over $300 billion. As of the time of writing, BTC is at $96,655.
According to analysis by AICoin (aicoin.com), the main reasons for BTC's pullback include:
1. Market Overheating: The Fear and Greed Index shows the market is in an 'extreme greed' state, investor sentiment is high, leading to FOMO phenomena.
2. Excessive Leverage Trading: Due to the previous rise of BTC, many short positions in the market have been liquidated, leading to current downward pressure.
3. Surge in Arbitrage Demand: Stimulated by a one-sided rising trend and favorable news, the funding rate rises, while the price difference between spot and futures contracts widens, leading more funds to pour into arbitrage, resulting in surging demand, but a discrepancy with supply increases market adjustment pressure.
4. Technical Pullback: In the 8-hour cycle, BTC shows divergence resonance, with MACD, RSI, and other indicators forming divergence signals.
Currently, the ratio of long to short positions in OKX BTC has dropped below 1.0, while Coinbase BTC maintains a positive premium, and market bullish expectations remain unchanged. According to AICoin PRO data, major players are still firmly betting on the $100,000 mark.
In the current bull market, pullbacks are opportunities! Besides technical analysis, we can also use the AICoin tool to capture potential trading opportunities. Here are several practical methods:
Method One: Lock in AICoin Exclusive News
(1) Trading Volume Anomaly News
Pay attention to changes in trading volume; if the price rises and trading volume increases, it is a bullish signal; conversely, it is a bearish signal.
Common volume-price analysis patterns are shown in the figure below:
Path: The [News - Exclusive] section on PC or APP
(2) BTC Spike Alerts
Spike patterns can be seen as reversal signals; an upward spike indicates resistance to rising, while a downward spike indicates weakening downward pressure.
If a spike appears along with a surge in trading volume, it is a very good signal for top selling and bottom buying:
• Top Selling: A significant upward spike appears, accompanied by an increase in trading volume; if major players are offloading, the effect is more pronounced.
• Bottom Buying: A significant downward spike appears, accompanied by an increase in trading volume; if major spot players enter the market, the effect is even better.
Based on this, a custom indicator can be extended, such as the [Spike Volume Method] strategy released by AICoin editors, monitoring top and bottom signals in real-time based on spikes and trading volume changes: https://www.aicoin.com/link/script-share/details?shareHash=NvxkOWbAqQPvVb5J
Method Two: Severe Volatility Alerts
Pay attention to BTC severe volatility alerts; if BTC shows a downturn alert, lock in the 5-minute increase ranking and focus on coins that do not follow the drop or can quickly recover losses.
Because when BTC falls sharply, it usually drives altcoins down; if a coin does not follow the drop, or follows BTC's plunge at a certain moment but can quickly recover its losses, it can be considered a strong coin.
Method Three: Ranking Data
(1) Trading Volume Ranking
Condition One: The trading volume change in 1H, 4H, and 24H ranks at the top.
Condition Two: Price increase ≤10% (if not, relax a bit, aiming for the smallest increase);
Condition Three: 24H trading volume ≥5 million USD;
Condition Four: The higher the 24H turnover rate, the better.
View Trading Volume Ranking: AICoin PC - Homepage
(2) Open Positions Ranking
Condition One: Changes in positions in 1H, 4H, and 24H rank in the top 10;
Condition Two: Open amount ≥10 million USD;
Condition Three: Price increase ≤10%;
Condition Four: The higher the activity level, the better.
If filtering the open positions ranking, find those that do not meet confirmation conditions two and three, exclude them, and prioritize looking at the 24-hour open positions ranking.
View Path: AICoin PC, [Homepage - Hot Rankings - Open Positions], experience it now: https://www.aicoin.com/download
Method Four: Price Movement
Pay attention to 5-minute price movement alerts, suitable for short-term traders; if multiple consecutive candles are bullish and the K-line body is large, the likelihood of sustained trends is high.
Set Path: Alerts - Severe Volatility - Price Movement
Download AICoin PC: https://www.aicoin.com/download
More trading strategies and methods share, welcome to join the [PRO CLUB] group and discuss with us!
The above content is for reference only and does not constitute any investment advice!
