Hello everyone, I am Zitan. Just now, when I was flipping through the行情, I saw that GIGGLE released a destruction announcement. I originally thought it would rise, but the K-line is still green and going down. Are you confused too? Don't worry, today I will explain to you in a chat format whether this is an opportunity or a pit.
First, let's look at the news: why did seemingly positive news become a hidden bomb?
Binance has completed the first batch of GIGGLE trading fee donations and destructions, permanently reducing the circulating supply. Just looking at this news, it's obviously a long-term positive for the deflationary model; the tokens are now scarcer.
But the market votes with its feet: prices are still falling. Why?
Currently in a downtrend, any long-term positive news may be seen as an opportunity for short-term funds to sell. Is the destruction volume sufficient to form immediate support relative to the overall circulating supply? That's the key. The real signal for a change often lies in the market's abnormal reaction to positive news.
The brutal reality of the technical aspect: the death cross is confirmed, and the key positions are clear.
Looking at the 4-hour chart, three facts are in front of us:
The MACD white and yellow lines are below the zero axis forming a death cross, which is a clear signal dominated by bears.
Under heavy pressure: 127 above is the first ghost gate, and 160 is a stronger rebound resistance level. Given the current volume and trend, the probability of a direct V-shaped rebound is extremely low.
Where is the support: The first short-term defense line is around 70, where there was a small platform earlier; but the real battleground between bulls and bears is in the 45-50 area, which is the potential stage bottom this wave of decline may reach.
Personal opinion:
The current price is hovering around the 88-90 area, with stable volume, indicating that both bulls and bears are waiting. Unless there is a sudden large volume intervention, the market is more likely to continue to seek support. If the short-term rebound cannot stabilize, it will be an opportunity to reduce positions.
I know you might be feeling conflicted right now, seeing your account shrink is tough. But that's how the market is; when the market is good, everyone can make money, and when it's bad, that's when the real gaps appear.
If you also feel like you're always 'chasing highs and cutting losses', and you often buy just as it drops and sell just as it rises, it's not a matter of luck; it's a lack of your own judgment system.
I am Zitan, focusing on finding patterns in the ups and downs, and explaining the market in simple terms. What ordinary players need to do now is to patiently wait for opportunities and act decisively and accurately. Follow Zitan and come to the village to receive daily real-time strategies and cutting loss guidelines!#BTC #ETH
