I am Old Chen, today we will talk about how to operate Bitcoin contracts!
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You know how weekends are, liquidity is not great, trading volume is lower than usual, and volatility is usually milder unless some big news suddenly breaks.
The Middle East conflict is a variable. Geopolitics can cause the market to panic when it senses risk; if there is any major action, the spot market might get scared and drop sharply. Conversely, if the news is gradually digested by the market or if some positive news comes out, Bitcoin (BTC) might rebound. So at this time, it’s more stable to hold a large position and play around with a small position in the short term.
See the chart.
If you really want to trade, you can only start from a small scale with a 30-minute timeframe. The small-scale trend is in a consolidation upward, but it’s already showing some fatigue at point E. The latest high for Ethereum (ETH) is roughly at the previous high, which is a key signal. Point E can be seen as an area to enter short positions, while point D below is a support level for bulls to watch. If the price breaks below point D, it means the short position strength is increasing. Continuing to look bearish is not a problem.
What about the news?
The news is expected to be negative, theoretically suggesting a focus on shorting. But what was that surge yesterday?
BlackRock has increased its Bitcoin holdings again! When such large institutions take action, the market sentiment changes immediately; yesterday's rise was likely pushed up by institutional funds. So now the market is a bit tangled, both bulls and bears are at odds, and the trend is not completely clear yet.
Operational thoughts:
Considering the current situation, we can play with BTC contracts like this today:
Short-term short: Near point E, open a small short position, targeting a profit at point D (for example, 103,000), and set a stop loss just above point E.
Short-term long: If the price stabilizes near point D, you can go long with a small position, aiming to look back at point E or even higher, with a stop loss set just below point B. This move is suitable for catching a rebound.
Let's wait for a big position: Don't rush to place heavy bets before the market has made a move. If the Middle East conflict escalates or there are other major negative news, it’s better to wait for a drop below point D before entering a short position; if the news calms down or institutions continue to increase their positions and push the market up, it’s also fine to wait for a breakout above point E before going long.
The market is ever-changing, especially on weekends; who knows what news might come up. Trading carries risks, so take it easy and don’t go all in and make yourself anxious. Have a great weekend, good luck, and may your trading be hot! 😎
