The surge in the early session on Monday should be familiar to those who frequently follow the market. For those who were unable to establish long positions around 107, I personally do not recommend chasing the market high at this time, as the risk is relatively high.
This week, the market will welcome the closing of the monthly candlestick. If the key support level can hold without breaking this week, then there will still be a demand for the market to push for new highs next month. However, despite the abundance of positive news in the market, the actual purchasing volume has not shown significant change, which is something we should be cautious about.
The current upward momentum in the market may not be strong, and there is a risk of a 'dead cat bounce', meaning a brief increase followed by a rapid decline. This rise may be intended to liquidate the short positions of large traders from yesterday; it is reported that a trader faced liquidation due to a 40x leverage short position when the price rose to 110,000, resulting in a loss of up to 1 billion dollars, and they have fully exited the market. Such events remind us again that while high-leverage trading can bring enormous profits, it also comes with extremely high risks, and once it fails, it may lead to total losses.
