Please read this article if you do not want to lose money due to the sheep shearing cycle of the market makers.
1. The bearish structure on the long-term frame of BTC is still not over.
In an analysis from over a week ago, I predicted a price drop of BTC and closed all my profits at that week’s rebound. You can refer.
Currently, the bearish structure has formed more clearly, as this week’s candle shows quite a strong price drop, while trading volume has shown signs of increasing again.
Along with that, signs of a halt in the capital flow of ETF funds have occurred as last week witnessed negative cash flow.
2. Should withdraw at which price area of altcoins
Today we witnessed a quite good recovery force of the whole market, but until now, the price of altcoins is still following exactly the same pattern as last week's rebound, and has not formed a price base area.
That’s why in many recent controversial articles, I still call everyone "don’t catch the falling knife".
The current strategy is to wait for the price base area to appear, below is an illustration of the price base formation of BTC in the month of March 2024.
Certainly due to the current market being much more FOMO than the previous stage, the distribution time and the formation of the base can be shortened, possibly only from 1-2 months.
However, for altcoins, they do not have the same support as BTC, during BTC's distribution phases, altcoins may see their lows.
So the determination of the base of altcoins can be temporarily identified based on signs of large buying force withdrawing.
As mentioned above, the base area needs time to be re-accumulated, therefore, the buying strategy at this time is not reasonable (this is my investment method, if you don’t like it, please avoid it)
Currently, I still hold 95% of my capital for earning, only 5% taken out for long and short for fun during this phase.
The article is quite long, if anyone finds it appropriate, please give me a like, a share, and if you don’t like it, please feel free to ignore.
Note: All analyses in the article are based on personal experience, you who participate in investment should take responsibility for your own decisions.
