In the past few days, Bitcoin has fallen sharply, almost 10% has been lost, and those copycat and MEME coins have also fallen, and the entire crypto market has been hit to pieces. Why is this? You will understand after reading this!
First, the fighting broke out in the Middle East. The United States even asked its embassy staff to flee. Once there was chaos in the Middle East, the financial market was like the rewind button was pressed, and it fell rapidly. Others fired missiles, but our accounts were blown up! Is it outrageous? It was definitely painful. The rally brought about by the interest rate cut was suddenly brought back to its original state.
Furthermore, the head of the Federal Reserve, Powell, said that the rate cut is not as large as previously thought. Although there will still be a rate cut to help the economy, there is no rush. He said that the economy is still okay, and the Federal Reserve wants stability, and does not want to cut too much at once.
And there are too many job vacancies in the US, more than 8 million, more than everyone expected. The manufacturing industry is not doing well either, with the PMI index falling to 47.2%, the worst drop since May this year, lower than everyone expected, and this is the sixth month of contraction.
The Japanese stock market has also been in a bad state these days. It has been directly halted. This may be because some previous problems have not been resolved, or it may be due to the new policies of the new prime minister, such as interest rate hikes. Do you remember that when Bitcoin fell badly in early August, the Japanese stock market also had a circuit breaker.
What will be the bottom of this decline?
In fact, Lao K had already said in the member group before the holiday that the market might be bad in early October and there was a high probability of a drop. Why did he judge that Bitcoin would fall? At the end of the month, we pointed out that the Bitcoin CME gap was around 53,000-54,000. This gap has not been filled yet, so the demand for filling is still there. Of course, we had given a warning before the Fed cut interest rates.
But when will it fall? When the daily and two-day lines reach the top and start to fall, generally speaking, a relatively large decline will begin. This indicator has been very volatile in the past six months.
So the first falling target of Bitcoin is around 53,000, but will it stop at that time? Not necessarily? At present, we should reduce our positions and wait and see. Configurable gold RWA token PAXG
So what about the A-shares that are currently on fire? In the past, no matter where the war broke out, A-shares paid the bill. This time, the market was closed for the National Day, so we escaped a disaster, and the cryptocurrency circle paid the bill. Although A-shares have risen for 5 trading days, there is a certain selling pressure. But we know that just before the National Day, we launched the Dongfeng intercontinental missile, and Qian Xuesen's ballistics shocked the world. So this deterrent still protects our investors. The opening rise after the holiday may take a break, but the subsequent impact is not significant.
Should I invest in A-shares or increase my holdings in the cryptocurrency market now?
Everyone in the market has been looking for opportunities to increase their positions. In addition, the A-share market was quite crazy before the holiday. Some people began to worry about whether to increase their positions in A-shares or in Bitcoin. Is Bitcoin the last chance to get on board now, or is A-shares the last chance?
If we look a little further ahead, we can clearly see that the sentiment of A-shares has changed significantly, but the fundamentals have not changed. The fundamentals of Bitcoin have also not changed. One is the bad part that has not changed, and the other is the good part that has not changed.
Therefore, those who did not buy A-shares before the holiday will definitely miss out after the holiday. Even if the bull market of A-shares and the bull market of Bitcoin start simultaneously after the holiday, then in terms of the rise and fall range and the amount of funds, one is a domestic investment product and the other is an international investment product, A-shares are far inferior.
October is usually the month when Bitcoin starts to rise. At present, the negative impact of the Middle East war on the currency price is gradually dissipating, and the daily RSI has reached the oversold level. The current price of about 60,000 is also lower than the price of 200-day fixed investment, which is in a period of time with relative cost-effectiveness.
There won’t be much time to see Bitcoin below 60,000. You must understand that bottom fishing is unrealistic. The only way to avoid missing out on cheap Bitcoin is to increase your position in batches.
If the drop is small, add a little, if the drop is big, add more, what is in the bowl is meat. No matter how crazy the altcoins are, don't chase them at this stage. When the big bull comes, the funds will rush to BTC first. Bitcoin will rise to a level first, and then it will go sideways waiting for Ethereum. After Ethereum goes up, Bitcoin and Ethereum will go sideways together waiting for the altcoins. At that time, if you still have some funds in your hand, it is time to buy altcoins.
Finally, Bitcoin, Ethereum, and altcoins all go crazy, the media reports them extensively, and then collapse and enter the next cycle.
We must always look towards the end and let the process take its course. Ups and downs are normal. As long as you have the chips in your hands and persevere to reach the end, you will win.
