July has ended, and Bitcoin ended with a small positive candlestick with upper and lower shadows, showing the existence of upper pressure and lower support. Overall, the market is still fluctuating in a "slightly downward sloping parallel channel".

Throughout the entire range of fluctuations, the trading volume of both long and short sides is decreasing, which is in line with the characteristics of the volatile market and is one of the reasons why I think a sharp drop is unlikely. From the monthly line, the current trend background is still a bull market, with large volume when rising and shrinking volume when falling. This is a healthy upward trend. The market does not show signs of a sharp drop, but is accumulating strength for the next rise.

The trend has not changed, and a small correction in the middle is normal. The cryptocurrency market is now more complicated than in previous years, and it is becoming increasingly difficult to make money. There are generally three types of market trends: rising, falling, and oscillating. Most of the time, the market is in a state of oscillation, and the time for trending market is often very short, and the waiting time is always long. This is also one of the reasons why many traders have not made any profit but have lost money so far.

When arranging at the bottom, many traders understand that they are doing long-term trading, but after several months of volatility, their patience is worn out, resulting in operations that are inconsistent with the initial trading strategy, leading to losses. Despite the market differentiation, Bitcoin is still the market's weathervane. Whether the bull market starts or ends still depends on the trend of Bitcoin, and the process becomes more complicated.

In July, Bitcoin hit $70,000 but failed to hold steady, which shows the great pressure from above. From the perspective of volume, although there was no increase last month, it increased compared to June. The long lower shadow shows that the support from below is also strong.

August is a critical month. From the trend background and form, it is very likely that Bitcoin will break through the previous high in August. This is only an analysis from the monthly line, and the specific details need to be observed through the weekly or daily lines. If the general direction is clear, there is no need to worry too much. It is a good phenomenon that there is no further decline in July. Therefore, you must have confidence in the market in August. Your persistence and waiting will be rewarded.

The past is past, life must go on, and the pace of making money cannot stop.

The bull market is not as simple as you think.

Even if $BTC hits $100,000, many people will likely see their gains diminishing.

Don't be that investor.

Here are 15 rules to help you maximize your gains during this cycle.

1. Unrealized gains are not gains

This is a very important rule to remember. Make it your lock screen wallpaper or put it on your fridge. Whatever you do, don't forget it. Paper profits are just fictitious numbers. They are real profits only when you actually sell.

2. Avoid using leverage

Altcoins are volatile enough on their own and do not require additional leverage to generate strong returns. Don't let greed ruin your gains. Many people fail because of using leverage - leverage is borrowing. Warren Buffett once said: "In this world, you don't need to borrow money. If you are smart, you can make a lot of money without borrowing money."

3. Gradually reduce holdings

No one can perfectly predict market tops. Plan to exit within the top third of the cycle. Be willing to leave a portion of your gains behind to secure your future.

4. Be prepared for a decline

It is just as important to consider downside risks as it is to consider upside potential.

Optimize your strategy to ensure you can withstand the worst-case scenario.

Opportunities for generational wealth are rare. Live long enough to seize them.

5. Look for asymmetric investments

Not all opportunities are created equal.

Don't let rising prices lure you into a bad risk/reward position.

The "upside potential" should always be greater than the "downside risk".

6. When in doubt, take the long view

Don't get lost in the hype. Take a step back and think about the long term.

Is the multi-year trend more likely to continue or reverse?

In the next 6 months+, will there be more liquidity flowing in or out of the market? Why?

7. Be strict in choosing investments

Altcoin dilution has reached unprecedented levels.

You don’t need to chase those shiny coins.

Most altcoins go to zero after the cycle ends – be very picky.

8. Keep your strategy simple

Complexity does not equal success. Complex plans often fall apart when the market moves. Narrow your focus and keep your strategy simple.

9. Be a big fish in a small pond

There are many fields in the crypto industry. It is impossible to be an expert in every field. Focus on your field and master a few niches.

10. Without your private key, you have no cryptocurrency

Many people have learned this simple truth the hard way. Even top traders can lose their savings due to security negligence. Develop good wallet usage habits and spread your assets across multiple wallets or centralized exchanges (CEX).

11. Bet on the leaders

Retail investors are often keen on chasing the "catch-up game", but in the long run, this almost always fails. The winners always continue to win.

12. Be a team player

Remember, your network determines your net worth. Don't be a lone wolf or you'll make less. Collaborate with other savvy investors and crypto enthusiasts.

13. Comparing altcoins with BTC

It is a mistake to focus solely on the USD valuation of altcoins. Instead, analyze the ALT/BTC trading pair. If your active portfolio is not outperforming BTC, re-evaluate your strategy.

14. The trend is your friend

In a strong trend, it is better to follow the general trend. It only makes sense to invest against the trend at the macro turning point. Otherwise, you will be trampled by the crowd (don't quit in the middle).

15. Don’t be too obsessed with your highest net worth

The market doesn't care about your profits or losses.

Being too persistent will only cloud your judgment.

Seize opportunities and accept losses calmly.

That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.