In recent days, Bitcoin has entered a volatile wash mode, ranging between 100,000 and 106,000. The pinning market is evident, further indicating that there is a wash operation behind the scenes, and while changing hands, the market is being harvested crazily!
There is no fairness in trading; the resources and strengths are not equal across the board. Retail investors are destined to be the weaker side, relying solely on luck and excellent trading strategies to succeed, with no other options available. In contrast, institutions can create a profitable environment.
There are only two effective paths in trading: one is ultra-short-term trading, where you quickly enter and exit when you sense a favorable market. This type of trading requires high technical skills and sufficient experience to master, and many people are not suited for it. The other path is trend trading, where you grasp the next phase of the trend, find suitable entry points through technical indicators, and trade with the best strategies. After that, you just wait for the market to unfold, which is more suitable for the majority of retail traders.
Those who truly understand trading know that no matter how much technology you learn, it is merely a skill; this is the most basic content of trading. It's like a barber: to cut someone’s hair, you must first know how to cut hair. Whether you can do it well is another matter.
Trend trading follows the way of nature. With all your learning, you only need to do one thing correctly: judge the trend of the next phase. This is like a barber shop owner; you just need to find the right barber to serve the customers.
Building your own trading system essentially means finding the trading habits that suit you best and executing them as strictly as a machine. This is a process of overcoming human nature. The vast majority of people have weathered storms but died before dawn because overcoming human nature is not something you can simply wish for; it’s a process of enlightenment.
Bitcoin has already risen in three waves and is now in a high trading density area undergoing volatile wash. There is obviously insufficient momentum. Of course, the main factor driving the market up is the substantial increase in institutional holdings. Institutions will not keep increasing their holdings indefinitely; what will sustain the continuous rise? It relies on more incremental funds and market consensus, both of which are indispensable.
Currently, the key position is around 105,800. If it breaks through, it will be a historical high; if it does not, it will be the current short-term high. From the perspective of risk-reward ratio and short-term trend analysis, going short at highs offers better cost-effectiveness.
