⚠️⚠️Attention! The Bitcoin market is about to change direction; if you misjudge the direction, it will lead to irreversible consequences! In the upcoming market, are you bullish or bearish?
Previous articles have repeatedly emphasized that the recent trading range is between 112000 and 120000, with the central position around 115000. Partners in the community who kept up have accurately seized at least two opportunities to short by 5000 points. Bitcoin will definitely test 120000 more than once, and if it falls back by 3000 points, that is certain; a second test will have a greater downward force, making a 5000 point drop a high probability event, so the trading strategy in the past was mainly to short on rallies.
A few days ago, when it fell to around 112000, the risk-reward ratio was sufficient to suggest going long, resulting in a profit of 3000 points. The basis for trading here is determined by the key reversal position in trend trading.
At the current stage, the lowest support level is 112000, the central position is 115000, and the highest resistance level is 120000. It is now time to choose a direction. Data from #比特币流动性危机 and on-chain analysis show that mainstream market liquidity is diminishing, similar to the weakening of consensus; thus, the likelihood of breaking through 120000 in the short term is low, which means a downward trend will likely occur.
Bitcoin's upcoming trading suggestions: Currently in an awkward position in the middle of the range, it is mainly a wait-and-see approach. Once an upward trend shows reversal signals, short on rallies. If a direct downward trend is evident, a light short position can also be taken, but in any case, do not blindly go long on dips. Even if it reaches the critical position of 112000, the specific price action must be considered, and one should not blindly chase long positions!
The second half of this year will welcome a major bull market, but before the bull market arrives, there will certainly be a significant drop to clean up the market. Therefore, for short-term traders, the primary mindset should be to short on rallies before the big drop occurs, and do not blindly chase long positions.
