Today is November 16, 2024, Saturday. Yesterday, Bitcoin continued to rise to $92,000, and Ethereum reached a high of around $2,130. Yesterday, the A-share market did not perform very well, and the closing price was almost at the low of the day. After the U.S. stock market opened in the evening, it continued to fall, but Bitcoin only fell back to $87,000 before it began to counterattack. Perhaps this is the power of the trend, or the main force has no intention of retreating yet, so it is prepared to continue to maintain the price at a high level. However, based on personal historical experience, this divergent trend will sooner or later follow downward. Therefore, at this juncture, I personally think that it is important not to blindly chase the rise and fall, especially for those altcoins that have risen a lot. Those who hold positions believe that they can appropriately reduce their positions or take profits and wait for a wave of corrections before re-entering the market. I personally think that before Bitcoin hits $100,000, it is expected that there will be at least one more opportunity to fall back to $85,000!
The current market panic index is also at a high level. The last time it happened was in March when Bitcoin peaked at $73,700. Therefore, I personally think it is still necessary to take a risk-avoidance approach at the moment.
Currently, the long and short coins in Europe and Italy are also at a relatively low position. Therefore, the safest way to make a layout is to wait for a pullback before starting the layout, just like the market started to fall yesterday morning. That is the stage where you can make a layout, rather than waiting for the big cake to rise above $90,000 again before chasing the rise.
In terms of altcoins, there are currently two mainstream coins that can be focused on, DOT and BNB. Currently, ADA and XRP have already pulled up a lot, and TRX has also risen sharply. Among the top 20 in market value, only these two have not yet made up for the rise. Therefore, when there is a pullback, they can be focused on and bottom-fishing.
The strong will always be strong in the crypto market. The currency Sui fell to 0.36 last year. Many people regarded it as garbage, but now it has become a popular currency. It has 10 times the space from the bottom. Therefore, the time point for us to participate in the market is still very important. There is no shortage of opportunities in the crypto market. The only thing lacking is the principal. Many people's funds have been squandered before the bull market starts, and they have been tossed out in the bear market.
You can make money if you hold the spot, but it is difficult to hold the coins. Some people like to make quick money and play the swing trade, while others like to hold the coins and choose to hold the long-term. Each has its own advantages and pains. My personal choice is not to do absolute long-term or absolute short-term. I use part of my position as a medium- and long-term position and part as a swing position. I set a basic goal for myself to achieve each time. After achieving it, I will operate cautiously. Sometimes there will be meaningful surprises.
Just like when we were in school, we hoped to get 100 points in every exam, but would be very disappointed if we only got 90 points. However, if we can lower our expectations and set 80 points as our goal every time, we would feel pleasantly surprised if we occasionally get 100 or even 120 points. If we can do the same in trading, we will no longer have to sell too short, or be unable to take profits, and feel the pain of making little money.
Trading seems to be a simple one-buy-one-sell, but the difficulty lies in how to control our greed and fear. The current market bullish sentiment is still very strong, but according to our above analysis and the current contract market liquidation comparison, a downward wave seems to be more in line with the dog dealer's operation! Therefore, for those who are anxious to enter the market, it is recommended that the best way is to wait for the retracement before starting to layout, rather than directly chasing the rise!
The market does not complete in one day, and the same goes for the bull market. Therefore, those who are currently short should not chase the rise aggressively, and do not think about making money from the last wave of rise in the short term. Enter and exit quickly, and do not use the swing positions as long-term ones!
Today’s article ends here, see you next time!
Investing involves risks. The above content is personal sharing and does not constitute investment advice!
