Powell's 'Dovish' Speech Leads to Widespread Gains in the Crypto Market: 4 Simple Guidelines for Those Stuck in Short Positions

Powell's 'Dovish' Statement Releases Clear Expectations for Interest Rate Cuts, Directly Driving the Crypto Market into a Bullish Trend. Investors Who Previously Shorted Have Found Themselves in a Difficult Situation. Instead of Being Anxious and Indecisive, It’s Better to Focus on Practical Response Strategies. Here Are 4 Core Suggestions to Help You Break Through Efficiently:

1. Cut Losses with the Trend, Avoid Gambling: The Current Market Has Formed a Dual Upward Logic of 'Macro Positive (Expectations for Rate Cuts) + Technical Breakthrough (Breaking Resistance Levels, Increased Trading Volume)', with Clear Trend Signals. If Your Short Position Is Light, Seize the Brief Window of Market Correction to Cut Losses Decisively. Avoid the Gambler's Mentality of 'Waiting for a Bounce to Exit,' Which Could Cause You to Miss the Best Opportunity to Control Losses.

2. Adjust Positions Wisely to Reduce Costs, Implement Strategies Based on Circumstances: When Slightly Stuck, You Can Reduce Short Positions During Corrections to Free Up Capital for Long Positions at Lower Levels, Using Long Position Profits to Offset Short Position Losses. If Deeply Stuck, Be More Cautious; It’s Recommended to Take Small Short-Term Long Positions at Key Support Levels, Take Profits After a Market Rebound, and Then Re-enter Short Positions to Lower Overall Holding Costs. Throughout, Avoid Frequent Operations Which Can Lead to Increased Fees or Misjudgments.

3. Lock Positions Carefully to Control Risks, Wait for Signal Unlocking: If You Are Uncertain About Subsequent Market Movements, You Can Lock Positions of the Same Cryptocurrency in Equal Amounts (Equal Numbers of Long and Short Positions) to First Lock in Current Losses. However, Be Cautious of Increased Trading Costs During the Lock Period, Such as Fees and Overnight Charges. Subsequently, Closely Monitor Market Reversal Signals (Such as Sudden Decrease in Trading Volume or Pressure on Key Levels) and Unlock at the Right Time to Avoid Being Passive in Long-term Lock Positions.

4. Maintain Calm for Review, Address Skill Gaps: Blind Operations Under Anxiety Often Worsen Losses. At This Time, It's Essential to Rationally Review the Logical Flaws in This Short Position (Such as Whether Macro News Was Ignored or If Technical Analysis Was One-sided). In The Long Term, Focus on Improving Technical Analysis Skills (Such as Judging Support and Resistance, Interpreting Price-Volume Relationships) and Macro News Interpretation Ability to Perfect Your Own Trading System, Enabling You to More Calmly Handle Normal Fluctuations in the Crypto Market.

Rational Response and Timely Summary of Experience Can Actually Accumulate Practical Insights for Future Trades. If You Still Have Confusion About Specific Operations, You Can Contact Wumu for One-on-One Free Guidance to Help Accurately Grasp Opportunities for Unwinding Positions and Layout.