If you don't want to be liquidated or stop-loss all the time, these two data points are essential for you to look at! One is the on-chain liquidation chart, and the other is the strong support and resistance levels for your maximum trading cycle.
A few days ago, the article emphasized the core support level of 112000, which is very important and is the core turning point that determines whether there will be a significant rise or continued decline. The current market is shown in the figure below, which has tested this position twice. We need to wait for the subsequent market trends to determine the next direction. Of course, I personally lean towards the bullish side.
In such a market, the on-chain liquidation chart has significant guiding meaning. Currently, the long and short positions are basically balanced, meaning it is time to choose a direction, and there is no obvious battle between bulls and bears. At this time, the market makers will not act casually, so we should also watch the changes calmly.
112000 is a strong support level in the high point fluctuation range, but it is also a strong resistance level for the next range. Therefore, once it drops, it needs strong momentum to return to this range. In a market where everyone is shouting bullish, continuing to decline clearly does not align with the interests of market makers and will only bring more people on board, which is very detrimental to future significant rises! Therefore, I believe the possibility of a drop is small, at most a spike to test the bulls.
Buying on dips has a good cost-performance ratio, with the first target at 115000, and if accompanied by an increase in trading volume, the second target near 118000. If there is no trading volume, it will be a range-bound consolidation, which will be quite boring.
In a market with uncertain conditions, when trading, you must either take light positions or mainly observe. Do not trade impulsively due to itchy fingers that violate trading discipline. There are always opportunities in the trading industry; all you need to do is seize your profit opportunities! Follow my subsequent articles, and once there is a change in market conditions, I will release it immediately. $BTC $ETH $SOL
