Recently, Bitcoin's market trend resembles a warrior ready to charge, continuously oscillating at high levels, looking for breakthrough opportunities!
Over the weekend, the price of Bitcoin briefly approached $69,500, showing a steady upward trend and demonstrating strong upward momentum.
Despite multiple attempts to break through the $70,000 mark in recent days, Bitcoin's strong position remains unweakened, creating a stage for altcoins to soar!
Popular cryptocurrencies like Ethereum and SOL are rising with the trend, becoming new favorites in the market, attracting the attention of many investors.
The cryptocurrency bull market is here; how to seize it
When the cryptocurrency bull market arrives, how can investors seize opportunities, maximize returns, and reduce risks? The following strategies are indispensable:
Asset allocation is crucial
Diversified investment: Spread funds across various assets, including stable mainstream coins (like Bitcoin and Ethereum) and potential small-cap tokens. Strive to find a balance between high returns and high risks.
Position control: Allocate funds reasonably, especially in highly volatile markets, to avoid heavy positions in a single cryptocurrency.Focus on market trends and technical analysis
Market sentiment: In a bull market, sentiment is high, so beware of market bubbles. Use sentiment indicators (like the Fear & Greed Index) to assess market conditions.
Technical analysis: Use tools like moving averages, support and resistance levels, and the Relative Strength Index (RSI) to accurately judge entry and exit timing.Set reasonable goals and stop-losses
Take profit and stop-loss: Plan profit targets and stop-loss levels in advance. Respond rationally to price fluctuations to avoid greed and panic.
Gradual position reduction: After price increases, lock in profits in batches to reduce risks.Balance long-term investment with short-term operations
Long-term holding (HODL): In a bull market, choose long-term potential coins (like Bitcoin and Ethereum) to hold, often yielding substantial returns.
Short-term swing trading: Capitalize on high market volatility to gain profits through short-term trading, requiring good technical analysis skills and risk control.Keep track of industry dynamics and news
Policy dynamics: Regulatory policies can have significant impacts on the market, so keep an eye on relevant news and respond in advance to market fluctuations.
Project progress: Focus on the development, partnerships, and technological updates of blockchain projects to ensure that the invested projects have real application prospects.Beware of Market Bubbles and Scams
Avoid FOMO: In a bull market, refrain from blindly chasing high prices due to 'fear of missing out.' Maintain a rational investment mindset.
Beware of Scams: Be cautious of fake projects and high-return promises emerging in the market. Choose transparent and trustworthy investment projects to protect your funds.
Next, unless the earnings effect of the US stock market escalates again, spilling more liquidity, or external stimuli occur, BTC may experience another breakthrough. Tonight's weekly initial jobless claims and September retail data may become opportunities. Attention should be paid to whether the Asia-Europe trading session will exert force again; otherwise, bullish sentiment could face a bottleneck. If this Friday's test of $70,000 goes smoothly, the bullish narrative may need to reorganize an 'offensive' next week!
Here, it is crucial to maintain good emotions, mindset, and mental state. If you get caught up in a state of excitement due to operational errors, and if a bull market truly arrives, you'll be in trouble. The bad situation is that the more you do, the more mistakes you make, leading to losses during the main upward wave of the bull market, which can completely collapse your mindset.
How will the subsequent market trend develop, and what should we pay attention to?
First, let’s talk about what to be cautious about: It’s still recommended not to chase high prices. Bitcoin is expected to break through $70,000 in the short term, but be mindful that if you're making short-term trades, remember to exit. For long-term holdings, you don’t need to be overly anxious; keep a calm mindset and hold onto your chips, waiting for the bloom.
Although the interest rate cut cycle has improved the macroeconomic situation and boosted Bitcoin's rise, the aforementioned US elections are one of the key trends in the cryptocurrency market recently, and a crucial factor driving Bitcoin's price. The increased likelihood of Trump's victory is certainly a primary reason, but another reason is that neither Republican Trump nor Democrat Harris mentioned trimming fiscal spending in their campaign policies. Instead, more economic stimulus policies are expected, which means that the proportion of US fiscal debt to GDP will only increase, and the direction of dollar easing under the government's massive spending is a path with no turning back.
It's worth noting that to fund the maintenance of the US economy's heat, the US has recently frequently and massively auctioned public debt to raise funds from the market, leading to difficulties in digesting market funds. This makes the bond market currently a supply-over-demand situation, resulting in lower transaction prices for new bonds and an increase in long-term US Treasury yields, reflecting a declining confidence among market investors in the dollar. At this time, gold and Bitcoin become excellent safe havens for funds.
Currently, the price of Bitcoin is above $68,000, and the distance to $70,000 is not far. Under the theme of 'Trump trading,' Bitcoin should be able to see greater increases. With the increasing possibility of Trump's victory, the market outlook remains positive in the short term! However, it may not be suitable to chase high prices for Bitcoin in the short term, especially for short-term investors; patience is advised.
