Early Morning Thoughts
After the release of today's non-farm payroll data, the cryptocurrency market experienced severe fluctuations. The price of Bitcoin briefly plummeted to the $108,700 level, and then, following a slight rise in after-hours trading of U.S. stocks, Bitcoin quickly followed suit, climbing to around $110,500. However, the good times didn't last long; after reaching a high, the price quickly retreated, and the strength of short positions in the market began to show.
From the current trend, the market pattern is gradually becoming clear. The $110,000 round number pressure is significant, and previous trends have repeatedly validated the strong resistance above this price level. At this time, blindly chasing long positions carries a high risk, and a slight misstep could lead to a trapped situation. Moreover, as U.S. stocks are about to enter a three-day market closure, market trading activity will significantly decrease, and liquidity will be restricted. During this period, if a one-sided trend forms, the contract market is very likely to trigger liquidation risks.
Based on the above judgments, high short strategies are more reasonable and safer in the short term. It is recommended that investors seize opportunities to short at high levels, while also ensuring proper position management and risk control, and reasonably setting stop-loss and take-profit points, to guard against losses caused by sudden market fluctuations.
Bitcoin: Short near 110000-109500, looking down at 108000-107500
Ethereum: Short near 2610-2580, looking down at around 2500
