Explosion Warning! The market encounters cooling at high positions, should retail investors reduce their positions or hold cash and wait?

In the past few days, the market has started to decline after a surge. Last week, Ethereum shot up from 1800 to 2700, and retail investors are still wondering if it can continue. The upward momentum suddenly came to a halt. Good news from the China-US tariff negotiations led to a brief market explosion, but then it lost steam; buying on expectations, selling on facts, the market began to catch its breath.

Bitcoin has shown volatility on both the four-hour and daily charts, with clear resistance at 106000 and the key support at the 100000 round number. Focus on 101000-102000 during the day, while the long-term view is on 96000-98000. If it breaks below the 90000-92000 gap, risks will increase.

On the macro front, interest rate cut expectations have been repeatedly postponed, with little hope for June and uncertainty for July, while the money printing policy remains undecided. In the future, focus on three major variables:

The June Federal Reserve meeting, if they cut rates or stimulate the market, a hard stance would put pressure on the market.

Updates on Ethereum ETF approval; if approved, it will trigger a massive influx of capital.

Regulations related to stablecoins and on-chain assets, once implemented, may lead to an explosion in on-chain assets.

Currently, the market is unstable, and one should proceed with caution. Don’t rush to 'strike gold'; cash is king to guard against black swans. Regulation is becoming stricter but gradually clearer, institutions continue to enter the market, and there is still potential for a bull market. Be patient and wait for the wind to come; opportunities will eventually arrive.

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