Currently, the price of Bitcoin is holding around 69,000 and has tested breaking down two or three times without a significant drop. This drop is just a temporary pause and does not mean the decline is over!
Many people are not aware that when the signal for a change appeared a few days ago, I repeatedly reminded everyone to be cautious of the induced bullish market! Many people instead feel that it is a normal small pullback during the upward process! Look at the middle market in the chart below, a typical induced bullish market, horizontal consolidation rapidly followed by a more rapid drop, on one hand, scaring away the bears, and those who are cautious closing their positions regardless of profit or loss, while bulls also jumped in! This drop directly achieves two objectives, both resolving the induced bullish situation and scaring away some bears.
Bitcoin is temporarily consolidating around 69,000 and has tested breaking it multiple times; it is very likely to break it in the short term, so avoid going long! The drop from 73,000 to around 69,000 is the first target, and it's normal to pause here. Traders on both sides will not rashly enter, unless the previously established short positions are in profit, or the earlier long positions are trapped.
Bitcoin has already risen too much in October. Since the beginning of the trend change a few days ago, a downtrend has formed. The reason for the horizontal stagnation is that the longs are trapped at high levels, and they are already the targets of the operators. During the decline, it's also necessary to consider the concentration area of the bears; it cannot be tailored for the bears, allowing profitable short positions to be forced out. This way, there will be better cost-performance during the next decline.
Those who follow my trades know that my average price is around 70,000. Considering the consolidation at 69,000, I have taken profits on 30% of my positions and suggest that everyone take some profits as well, since it has risen three times. This reduces the position and leaves more space for future strategy adjustments.
Next, trend analysis: The overall trend is still a downtrend, and we will approach the second target of around 66,000. Set your take profits and prepare for a new wave of decline. No matter what kind of trading you do, always operate with a light position; avoid heavy trading!