[Bitcoin drops to $113,000 on August 20! What to do in this fierce bull-bear battle?] 📉
🔥 Quick Look:
· Current Price: Approximately $113,000, down from its all-time high of $124,500
· Intraday Drop: 0.73%-2.99%
· Key Support: $111,300-$112,000 (based on the EMA 90, lower Bollinger Band, and other congested areas)
· Key Resistance: $115,000-$116,800 (4-hour EMA congested area)
· Market Sentiment: The Fear and Greed Index enters the "Fear" zone
📈 Bull-Bear Game:
· Why the drop? After repeated failures to break through the key resistance level of $120,000, some "whales" have taken profits.
· Potential positives: ✅ Short positions have reached a record high (over $2.2 billion), potentially triggering a short squeeze in the event of a rebound ✅ Market expectations of a possible Fed rate cut in September
· Key negatives: ❌ The number of whale addresses has fallen to a yearly low (profit-taking) ❌ Technically, there are signs of a double top and a rising wedge breakdown ❌ Trading volume is shrinking, indicating insufficient momentum
🎯 Trading strategy for reference (be aware of the risks!): 1️⃣ Range trading (assuming range-bound trading between $111,500 and $116,000): * If the price stabilizes near the $111,500-$112,000 support level, consider a small long position with a stop-loss below $111,000, targeting $115,000-$116,000. * If the market rebounds to the resistance level of $115,000-$116,800, it may be a good time to try shorting with a small position. Set a stop-loss above $117,000, with a target of $113,000-$112,000.
2️⃣ Follow the breakout: * A firm position above $116,800 could trigger a short squeeze, with upward movement towards $120,000. * A break below the key support level of $111,300-$111,500 could open up further downside, with downward movement towards $109,000 or even $108,000.
3️⃣ Conservative investors should wait and see: Wait for a clear direction, or invest in batches near support levels.
⚠️ Important Notes:
· Pay close attention to the Fed's Jackson Hole Annual Meeting statements.
· Keep a close eye on the support level of $111,300-$112,000 and the resistance level of $115,000-$116,800.
· Due to significant volatility, maintain a small position with a stop-loss and practice proper risk management!
💎 Summary: Short-term trading is acceptable, but a stop-loss must be set! For medium- to long-term trading, invest in batches or wait for a clear direction.
