Bitcoin finally pulled back, and I finally felt relieved.
Many people are panicking and very worried about the future market trend, hoping there will be a big correction or a sharp drop.
Although we cannot predict what will happen in the future, from a probability perspective, the possibility of this happening is very small.
In this wave of pullback, market data showed that long-term holders began to cash out, rather than ETFs.
This also shows that when it came to the critical node of 100,000, there were installments among the big players, and institutions have been buying and selling, keeping Bitcoin at a high level.
Some long-term holders have begun to cash out. They believe that Bitcoin should make a correction and that it has already reached a new historical high. There is actually nothing wrong with cashing out and locking in profits.
Institutions buy and long-term investors sell. This is originally a delicate balance. If Bitcoin starts to fall sharply from this position, it will be the long-term investors who are making a profit from the institutions.
But no matter how hard I thought about it, I couldn't understand this reason.
Long-term investors are indeed awesome in the eyes of us retail investors, but they are nothing compared to institutions.
Institutions may not care about the profits from these scraps, they see the bigger picture.
2. This week saw Thanksgiving and Black Friday, so institutional funds could not flow in, while the holidays and shopping would lead to capital outflows from the cryptocurrency circle. As a result of the increase and decrease, the market was suppressed.
It can also be seen from the performance of Bitcoin that, especially under the fierce impact of long-term investors, the market has experienced a wave of correction as expected.
In fact, this callback is not difficult to predict
Where will Bitcoin pull back to? Judging from the current market, the update of the 11 billion assets below the 90,000 mark is relatively large.
This position is also a support. If this round of decline reaches this position, you can start to cover your position.
Further down, there is another support level of 87,000. When it reaches this position, it may be an excellent opportunity to enter the market.
Of course, the cost-effectiveness of buying Bitcoin at the bottom is very low. Entering the Bitcoin market at this time, if the bull market is confirmed, is a bit like entering the market in 1949.
I will let you know exactly what the project is.
However, no matter what I invest in, my principle is to invest in mainstream coins with certain value. No matter how much the junk coins increase, I will not be jealous. Everyone has their own investment margins and cognitive boundaries. The ghosts and monsters beyond the boundaries are not within our investment scope.
3. Check your eyes with everyone again.
We are still in the first half of the bull market and the real outbreak has not yet begun. Don't lose confidence in the market because of a short-term pullback.
If the market continues to rise like this, I will be very panicked.
It is no longer consistent with my feeling about market trends, and I need to re-establish my perception of the market.
Now that the market has pulled back, I feel relieved.
At the same time, for the entire market trend, it has already risen so much. It will pull back to find support again, then fluctuate and consolidate, accumulate strength to take off again, which is very good for the bull market process.
A tall building is built up floor by floor and cannot be suspended in the air.
We all know that in technical analysis, there is a saying that gaps must be filled, and this is the reason.
When the price goes down, what I do is to focus on the currencies that I like and slowly add to my positions as the price goes down.
When the last bull market started, it was also at this time, Thanksgiving and Black Friday, Bitcoin pulled back 15 points, then experienced about a month of volatility, and then slowly took off.
The trend of this bull market is very similar to the previous one.
However, the decline of Bitcoin may not be that large, about 10 points will be enough, which coincides with the two support levels we judged above.
Finally, believe in the bull market, believe in Trump, believe in Bitcoin, when it falls, others will panic, but my friends should be excited.
