In the short term, Bitcoin has dropped from the resistance of 117,000 to the support of 115,000, starting a natural rebound. This rebound may reach the minor resistance near 116,000, or the larger resistance at 116,800. If it reaches here, I might continue to short another position.
The support below is around 115,000, as shown in the picture. We took profits near this area, and we shorted three times to 115,000 without any issues. Many of you took profits at 115,000 and then reversed to go long briefly. Congratulations!
However, the support at 115,000 may not be very strong. After this rebound, Bitcoin might still drop. A more stable entry point for going long is actually around 114,000, where I would feel more at ease. It just depends on whether the market provides the opportunity.
Many people currently don't understand the market; they think it should rise after a rate cut, right? Actually, Shuqin explained the script to everyone two weeks in advance. It's good news that everyone knows about, and the market has already priced it in ahead of time, completing the rise before the rate cut.
So after the rate cut, the cryptocurrency market actually dropped, commonly known as the good news being fully priced in. This is also the reason why we took profits and shorted at the most frenzied time during the rate cut. The current trend has not deviated from expectations; we are professional investors and will not follow the retail investors' actions.
Additionally, Shuqin has observed that some whales have started to buy on dips, showing a fairly positive risk appetite, because the Federal Reserve has two more rate cuts scheduled for this year.
So I can't see much of a pattern indicating a significant drop in this callback for now; it probably won't drop too much and should be relatively mild. If the market changes, for example, if the upcoming employment or inflation data shows unexpected positive or negative news, then we will adjust accordingly, staying active and making trades every day~
