Everyone thought there would be a big drop yesterday. The previous one was very scary. At the close of this morning, many currencies recovered. This drop was to explode long contracts and lure shorts.
The amplitude of this correction is not large, but the amount of liquidation is very large, which shows that some big investors are long and the main force’s intention is very clear, which is to eat the big fish, and those with lower liquidation price will escape.
The main force will not pull up the market unless the big investors are liquidated. Therefore, this pullback is not a bad thing. It just gives an opportunity to those who have not entered the market yet. But how many people dare to buy at the bottom?
Bitcoin closed with a hammer line yesterday, and the volume was huge, which shows that the support below is very strong. After all, it has reached the miners' shutdown price range, which is the lifeline. A short-term break is no problem, but it is impossible to fluctuate at this position for a long time. If it fluctuates, it will return to more than 600 million US dollars.
From the market trend, we can see that the entire large shock range has formed a slightly downward sloping parallel channel. This pattern is not a falling pattern.
If yesterday's daily line had closed with a medium-to-long negative line, and the price had fallen below the slightly downward sloping parallel channel, then the price would have continued to fall, but yesterday's K-line closed very well.
There is a huge hammer line, and it appears at the support level. This is a very strong stop-loss signal, which means that the market has stopped falling, and the most that will happen next is an inertial decline.
The characteristics of inertial decline are shrinking volume and not breaking the previous low. Once Bitcoin stops falling, other valuable shares will rebound quickly. Another characteristic during the bull market is sharp drops and rises. This trend is the explosion of contracts and clearing of leverage.
My view has always been that during a bull market, one should not be afraid of pullbacks. Instead, they are opportunities. Such opportunities will become fewer and fewer, and every time you miss one, it’s one less opportunity.
Bitcoin's market value is relatively large, and since it has already risen to this level, the possibility of a sharp rise is not too great, and it will more likely rise in a volatile manner.
But other currencies are different, especially those that are valuable and have not increased much. They will usher in sector rotation. Whether you can buy such currencies depends on your understanding and vision of the industry.
Some people may say, then tell me a few currencies to verify their strength. It is ridiculous to have such an idea.
First: We are not familiar with each other, and you wouldn’t believe it even if I told you.
Second: Our trading system is different, and the currencies we screen are only those that comply with our trading system.
Third: It is difficult to get results if you don’t improve yourself but just listen to the news. There are many people in the market who are talking about how much this coin will rise, and how much that coin will rise, but how many people can actually make money?
Fourth: Human nature is inherently full of suspicion. The less we understand, the more suspicious we become.
Take this year's market for example. I have been saying that the bull market is still there. I am judging the trend based on the entire bull-bear cycle. However, when there is a slight short-term correction, someone will say that you have made a wrong analysis. Sometimes it is really speechless. Before judging others, at least you should see clearly what they are saying.
Everyone’s trading cycle is different, and I don’t even know what a trading cycle is. How can I have the nerve to judge others?
I do trend trading for the entire bull market, and you do 15-minute trading. The K-lines we look at are different, so there is no way to compare them.
Instead of spending time judging whether others are right or wrong, you might as well calm down and study hard to improve your own abilities. After all, only when your own abilities are improved can you survive longer in the financial market.
The above analysis only represents personal opinions and does not constitute any investment advice.
