Yesterday, after Bitcoin's price surged to a high, it began to consolidate at high levels with slight fluctuations, and the market appeared hesitant and cautious. Then, sudden news caused the market to quickly weaken. A large bearish candle appeared on the 1-hour chart, directly breaking the support level, and bearish sentiment exploded. Immediately followed by another large bearish candle, showing a clear drop, the rebound was weak, only slightly rising before being suppressed, with bears completely dominating. Panic in the market was ignited, leading to a collective crash of altcoins, and funds rapidly fled.
Currently, on the 1-hour chart, Bitcoin has entered a low-level consolidation after a sharp drop, with prices oscillating in a lower range. This is a typical 'consolidation after a cliff', and it may continue to decline, but there is also a demand for short-term recovery and rebound. Considering the current market rhythm and changes in chips, this is a good time to pay attention to some deeply dropped, fully released altcoins and attempt to make a short-term bullish trade. Of course, risk control is still the priority, and stop-loss must be set well, especially to guard against sudden spikes.
Currently, ETH has reached the key daily support level of 2380. It will recover the drop from the early morning in the next couple of days, but it's unclear how much it will recover. If market funds are strong, it may recover to 2490-2500. If market funds are weak, it will be difficult to surpass 2450. If going long near 2400, you can observe market sentiment, and if something seems off, exit promptly, don’t be stubborn.
The significant reduction in ETH spot CVD is the main reason for yesterday's drop. The increase in open interest indicates more people are betting on a rebound at the support level. If it goes up, everyone will be happy, and the market will continue to oscillate within this range. If it goes down, it really could drop to around 2200.
Altcoins
I haven't moved my short position on FARTCOIN. I have long thought this coin's movement was very weak and could crash at any time. A few days ago, it was stubbornly holding up, and I wanted to close my position several times but gritted my teeth and held on. Today it finally plummeted, FARTCOIN fell sharply, and my short position profit soared to +400.88%.
Short-term trading: It's okay to make mistakes, but don't go all in, you need to leave yourself a margin. As long as the trades have logic and expectations, if you can hold on, you will always be able to wait for the value to be realized. The recent crash of FARTCOIN finally validated my judgment, what a relief!
The daily level for SIREN has been consolidating for a long time, with extremely muted movement and basically no significant volatility.
What we should focus on the most are these types of coins. Why?
Because before such coins crash, the project team usually creates a wave of false pumps to sell off, creating the illusion of 'institutional entry' to attract retail investors to take over, and then quickly dump for cash. This kind of pump often comes quickly and is harsh, misleading people into thinking a breakout is imminent, only for them to be directly caught after FOMOing in.
For this kind of market, we should lay low positions in advance, never chase high, and only wait for false pumps to appear; endure the earlier liquidation and don't easily get shaken out, otherwise, you'll miss the rise and lose the chance; once the rise is realized, take profits immediately, never be greedy, because these types of coins can drop sharply with a large bearish candle, leaving no reaction time! Like SIREN, a coin that nobody cares about, you should be most wary of overlooking it. Once you focus on it, it may turn into an opportunity.
What Wall Street's third strategy does is harvest retail investors. In the early days of the US stock market, retail investors were predominant. Can you guess why, by today, retail investors have basically been driven out or killed off, obediently handing their money over to institutions for management? When Wall Street institutions can collaborate with the president, continuously release news, reverse and reverse again, with twists and turns, when the market is being pumped and dumped, how should a small retail investor position themselves?
In this round of the bull market, shorting altcoins at highs is the right path.
Yesterday I followed this rhythm in my article (Trump angrily confronts Powell! If interest rates are not lowered soon, the crypto bull market will cool off! Bitcoin plummeted 100,000 over the weekend? Ethereum is sideways, altcoins are about to be halved, smart money has already positioned itself!), and I found several good opportunities to short altcoins.
Lastly, a sudden piece of news—Trump is criticizing Powell again, constantly emphasizing that the Federal Reserve should quickly lower interest rates and reconsider whether Powell should be fired!
