The market indeed unfolded as expected, with a beautiful start to August, waking up directly to secure profits.
I believe many people certainly opened long positions last night, and the same was true in our small circle. Even after I gave the signal to short, there were still those who couldn't resist the urge to go long.
The U.S. stock market opened high and then pulled back, while the cryptocurrency market did not follow suit and was not seen as declining by most people, leading to a shift in thinking towards shorting.
In fact, everyone might consider this: with such a significant rise in the pre-market for U.S. stocks, did Bitcoin and Ethereum also rise? No, they actually fell, which clearly indicates weakness in the upward movement.
Now someone might ask, will it continue to fall this month, and what should we do if we are stuck in long positions?
During the day, there may be some rebounds in the market, but only after the non-farm payroll data is released at night can we further confirm the direction. Ethereum's market is highly volatile, and most people find it easy to get stopped out when they set stop losses, while those who don't set them risk being stuck; the difficulty of trading has increased, and in our small circle, we rarely see times when we hold on to positions.
Currently, long positions in Ethereum have been established at 3680, and whether we can break through 4000 this month still has a chance. There's a high probability that we will see a false rally.
After the non-farm payroll data is released tonight, we will analyze the market again, and whether our small circle can continue to profit will depend on the performance tonight.
