July 22 Market Analysis | Don't Chase Highs, Beware of Pullback Risks
Good morning, brothers, let me briefly discuss the upcoming trend judgments.
Many people have been privately messaging me about their anxiety over missing out and wanting to chase the highs. My unified response is:
Now is not the time to chase highs!
Let's review:
ETH has risen 3 times before the entire network started to boast, while the big players had already set their positions from the bottom, just waiting for retail investors to take over.
I had warned about SOL in advance, and yesterday it finally exploded, breaking through $200.
Many people rushed into DOGE under FOMO emotions, and today they were directly "educated".
Currently, there are three risk points in the market:
Mainstream coins have seen significant gains, and there is short-term profit-taking pressure
U.S. stocks are at a high level, which may lead to a pullback dragging down the crypto market
Capital is weakening at the margins, chasing highs can easily lead to being harvested
The upcoming suggestions are very clear:
Don't go all in, keep your position under 70%
For coins with large gains, at least take profits by reducing your holdings by half
Don't chase hot spots; instead, pay attention to sectors that have lagged but hold potential, waiting for pullback opportunities to enter
In the medium to long term, I still remain optimistic:
The U.S. dollar index has fallen over 9.7% this year, reducing the attractiveness of U.S. assets
Policies in various countries (excluding China) are gradually becoming favorable to the crypto market
Funds are looking for new assets to seek higher returns
To summarize: this wave of the market isn't over yet, but short-term risks are starting to accumulate. Don't rush; wait for the pullback, and that will be the opportunity.
