$BTC

I. Quick Review of Event Background

Event: Musk and Trump are at odds due to political positions, AI, or economic policies, raising market concerns about future policies and the tech industry.

Market Reaction:

Investor sentiment worsens → Tech stocks decline → Cryptocurrency assets are under pressure

Bitcoin short-term drops 3-6%

Funds shift to safe-haven assets (such as USD, gold)

II. How to Respond to Short-term Bitcoin Decline?

1. Observe whether it is a systemic risk

If it is just a one-day emotional pullback → It can be seen as a short-term washout

If it spreads to the stock market/overall capital outflow in crypto → Should cautiously control positions

2. Technical Operation Suggestions

Break below important moving averages (such as MA20, MA50) → Reduce positions or set stop-loss

Drop to support area (previous lows, trend lines) → Can buy small positions at the bottom, set tight stop-loss

Volume drop → Wait for bottom signal confirmation before entering

3. Strategy Suggestions: What can be done?

A. If you already hold positions:

Set stop-loss (such as 5-8%) or dynamically track profit

If the support level holds, consider adding to positions, but control the position size

B. If you are ready to enter:

Set buying conditions: such as dropping to daily support + rebounding before entering

Or wait for a rebound to fail at moving average pressure to short (trend-following operation)

C. If you are a contract trader:

Can use small positions with high leverage for trend-following operations (such as short positions)

But be sure to strengthen risk control (set stop-loss, do not hold overnight)

III. Advanced Suggestions: Focus on Sentiment vs. Technical Reversal

Sentiment: Observe whether large players have extreme long-short ratios, funding rates

Technical: Check for oversold conditions (such as RSI < 30) or bottom divergence signals

News: Is it spreading to policy matters? For example, is Trump publicly discussing Bitcoin policy?

Conclusion

The price of Bitcoin is often driven by sentiment. Events like 'Musk vs. Trump' may cause short-term fluctuations, but if there are no structural issues, they are often short-term opportunities.

Remember to face such news markets with discipline, risk control, and conditional trading.