August 6, 2024 Grandpa checks in
Driven by the rebound of the US stock market last night, global assets started a counterattack. The Nikkei index rebounded sharply and closed up more than 10%. The crypto market was no exception. The rebound from the low point was more than 10%, and if calculated according to the lowest point, it was 20%. Once again, it proves that the market where Bitcoin plummeted by more than 20% in a single day is still a good opportunity to buy at the bottom. The price of yesterday's bottom-fishing easily achieved a profit of 10%. Yesterday, I clearly felt the panic from fans, but I also strongly recommend buying at the bottom, especially before the opening of the US stock market. In fact, the price has been reflected in the market in advance, and we don’t need to wait for another wave of decline.
Of course, this price has only recovered the second support, and there is no reversal. If you have not bought the chips after the plunge, you are still in a quilt state. The reason why I still have bullets to shoot and dare to take action is that the core is that the position management is good. The general trend of this wave of market is "downward wide fluctuations". I have said many times that the purpose of each bottom-fishing is to take into account the short-term market, so if it rebounds to a certain extent, I will stop profit and sell. This time, I have sold half of the bottom-fishing position at a profit of about 10%.
According to the general market rules, after the plunge, there is an oversold rebound, followed by a second test at the daily level. This is the main logic for me to choose to stop profit. However, considering that this time it was caused by the black swan plunge of the Japanese stock market, I think this low point will become a mid-term bottom, and there is even a high probability that the bottom of the "wide downward fluctuation" has been hit. Therefore, I only stopped profit on half of the chips for bottom-picking, and the rest was turned into long-term, to get the big bull market next year. If the market does bottom out again as expected, I will continue to buy the funds for the stop profit.
The so-called second bottoming means that Bitcoin will go back to the low point of around $50,000, and Ethereum will go to around $2,200. This is a more reasonable move. If you are like me, you can buy the bottom at around 2,300, and then place an order to take it back in advance, but be aware that the second bottoming may not be accurate. Finally, this wave of falling market may hit the mid-term or long-term bottom. If there is a volatile market in the next few days, it will be a good time to build long-term chips. In fact, I not only bought the bottom of Ethereum yesterday, but also bought some cottages, and I made a long-term configuration.
Thank you for your attention and likes.
