⚠️⚠️Attention!! Bitcoin has strongly broken through with high volume, pay attention to the key resistance level of 12000, a trend reversal signal is about to appear!
Bitcoin's strong breakout through the midline means it will test 12000 again, but it does not indicate a strong breakthrough to continue to new highs! In previous articles, I have mentioned multiple times that before a real bull market arrives, there is a high probability that one more round of long positions will be liquidated.
Everyone can imagine that the market trends known by ordinary retail investors are definitely not what the big players want to do. First, there is a consensus that everyone has, which is that Bitcoin reaching above 150000 USD is not a big problem, but how to get there is crucial. Those who have been trading for more than a few months, especially in spot trading, can make money, but for short-term traders, whether in contracts or spot trading, they may end up not making money or even losing money! This is why it seems easy to make money in a bull market, yet few people actually profit; frequent trading increases the likelihood of mistakes and hidden costs, leading to a gradual loss of chips.
In previous articles, I mentioned that we must have a contrarian mindset. While everyone is chasing long positions and bullish trends, we need to have a short-selling mindset. Here, short-selling does not mean that a bear market has come and we continue to be bearish, but rather it is about analyzing the trend of phase trading. In the eyes of contract traders, there should be no distinction between bulls and bears; the most important thing is to grasp the trend of our own trading cycle.
Bitcoin and Ethereum will always be the number one and number two distinction. If analyzed from the perspective of different tracks, they are both absolute leaders in the coin circle, and the trends are basically the same. My trading habit is to only trade a single cryptocurrency, which allows for greater focus and better trend judgment.
You can open a small short position around 120000 for Bitcoin. If it strongly breaks through, you can follow a three-phase investment trading strategy, with only one purpose: to wait for a significant market drop. It has a very good risk-reward ratio, and once it drops again, it is very likely to break 111000! However, the possibility of it continuously rising to 130000 without looking back is very small, and such an opportunity is very worth seizing.
Pay close attention to the market trend of Bitcoin around 120000. If it cannot strongly break through, prioritize short positions. I will release any obvious trend reversal signals as soon as possible, and patiently wait for the market to arrive.
