Trump's "call" harvests the market, could Bitcoin drop even further? Has the bull market been ruined by him? What is the correct way to operate?
On Tuesday, the crypto market changed overnight, continuing to plunge at the opening, and by morning had dropped back to the 83k range. After breaking through the 2.28 spike below 80,000 dollars, it naturally rebounded, returning to the starting point of 84k where it began to recover. It can be said that it has effectively broken through the bottom established by the previous "deep V" pattern.
Trump has stated that he plans to increase tariffs on Chinese goods exported to the U.S. by another 10%. U.S. President Trump confirmed that he would impose a 25% tariff on goods from Canada and Mexico. After this news broke, the Nasdaq has nearly dropped back to pre-election levels. The significant decline in U.S. stocks is attributed to the overnight confirmation of the increased tariffs and the signing of the executive order to raise tariffs.
Trump's involvement in insider trading in the crypto circle has intensified market turmoil. The Trump family has recently entered the crypto space, manipulating the market through calls and insider trading. Whales are going long on BTC and ETH with 50x leverage, which poses extremely high risks.
Trump's calls may either be for bottom fishing or to collect advertising fees, exacerbating market volatility and harming retail investors' interests. His previous support for cryptocurrency before taking office has been accused of paving the way for market manipulation. Conspiracy theories suggest that Trump colludes with market makers to manipulate the market, leading to centralized control over decentralized currencies, raising concerns about long-term prospects.
Returning to crypto itself. Bitcoin has oscillated above 92k for several months; the longer it goes sideways, the deeper the position it will fall to once it breaks below 92k. The market makers need to accumulate enough chips at the bottom before pushing up again.
Encountering a sudden positive from Trump forces market makers to pull up suddenly to prevent others from stealing chips, which is not good for the washout. The market has its own cycle and operating logic. Before completing the tasks of washing out and accumulating chips, it is difficult to have a genuine market trend.
First, regarding trading ideas: The daily line is testing the SMA200 support level for the second time; it is a relatively good trading strategy to go long against the support level in the short term.
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