Today's Market Analysis
First, let's pay attention to the situation of the US stock market. The US stock market closed early last night, and now we have a three-day holiday. Without the influence of US capital inflows, the market's activity and volatility will decrease, and the market will enter a phase of consolidation. In this situation, with the main players absent and the direction unclear, short-term market fluctuations often revolve around 'liquidity harvesting', which is what we commonly refer to as the back-and-forth sweep of the 'liquidation zone'.
Is the current position of Bitcoin still suitable for going long? My view is not recommended. Firstly, this wave from 98,000 to 110,000 has not seen much of a pullback. Secondly, the trading momentum over the weekend is weak and insufficient to support Bitcoin in breaking new highs. Therefore, I think everyone can wait for a return to fill the gap before establishing long positions.
The thought process over the weekend is also relatively clear:
First up then down: If the weekend first hits above 111,000 → bearish liquidity is released → look for shorting opportunities.
First down then up: If it first fills the FVG gap → look for a rebound on the low side → target can be set at the previous high of around 10,660.
If both up and down have been swept: It indicates that the market has completed a full liquidity wash. In this case, the best strategy is not to participate and wait for a new liquidation zone to form.
Additionally, we can pay attention to the liquidation heat map of Bitcoin. A large number of short liquidation zones are concentrated around 111,000, while the long liquidation zones are around 107,500. In the short term, trading can be done within this range.
Lastly, we need to pay attention to Trump's statements. Although he doesn't often speak during holidays, his remarks on tariffs, trade, and interest rate cuts come back before the market reopens on Sunday.
Finally, for altcoin segments, you can pay attention to these: pengu, fun, bananas31, chess
