In the field of cryptocurrency trading, market fluctuations are like surging tides, unpredictable. Looking at the market from August 11 to 17, the volatility of Bitcoin and Ethereum has been exceptionally intense, trapping many traders in a predicament. Don't worry, Yunlu is here to share some practical ideas for resolving positions, helping everyone find a breakthrough direction in this volatile market.
1. Judging the trend is key
The urgent task is to calm down and accurately judge the overall trend of Bitcoin. Take the week from August 11 to 17 as an example, the price trend of Bitcoin was like a 'roller coaster.' On August 11, Bitcoin quickly rose, breaking the $121,000 mark, reaching a high of $122,370, and then on August 14, it broke through $124,000, surpassing the historical high of July 14, hitting a peak of $124,545, but soon the increase narrowed, and by midnight on August 15, the price fell back to around $117,000. Looking at a longer cycle, since Bitcoin turned from falling to rising in April, it has been in a fluctuating upward trend. Although there were price fluctuations during this period, the overall upward trend is clear. Therefore, if the major trend has not changed, for friends who are lightly stuck, it may be worth being more patient and holding on, waiting for the price to rebound.
2. Respond flexibly based on positions
• Lightly Stuck: If your position is relatively light and unfortunately stuck in this wave of extreme volatility, there is still a lot of operational space. For example, during the period from August 11 to 17, Bitcoin's price fluctuated frequently. When the price rebounds and approaches the short-term resistance level on the hourly chart, one can reduce the position appropriately to lock in some losses. When the price falls back again, the reduced position can be replenished. Through this high selling and low buying operation, one can continuously lower their holding cost and gradually resolve their positions.
• Heavily Stuck: Once heavily stuck, the situation becomes somewhat tricky. If the account funds are still relatively sufficient, when the price falls to key support levels, one can consider adding to the position to lower the average cost. Bitcoin has strong support around $115,000; if the price drops to this level, a portion of funds can be used to add to the position. However, it is important to note that the funds for adding to the position should not be投入 too much at once, or else the risk will further expand if the price continues to drop. If the account funds are nearly depleted and close to the edge of liquidation, it may be necessary to cut a portion of the position to ensure survival in the market, and then reallocate once the market situation becomes clearer.
3. Skillfully use technical indicators for assistance
Technical indicators can help us better judge the timing for resolving positions. For example, the MACD indicator, during the market from August 11 to 17, if the MACD histogram starts to shorten and the DIF line shows an upward trend crossing the DEA line, this is likely a signal for a short-term rebound, and we can consider reducing or adding to our position at this time. Additionally, looking at the KDJ indicator, when the KDJ indicator forms a golden cross in the oversold area, it also indicates that the price may rebound. These are all important references for our position resolution operations.
4. Pay attention to market news
The cryptocurrency market is extremely sensitive to news. During the week of August 11 to 17, we need to closely monitor the policy dynamics of various countries regarding cryptocurrencies and the changes in large institutions’ holdings of Bitcoin. The inflation data released by the U.S. met expectations, reinforcing the market's bets on the Fed's interest rate cuts in September. In this optimistic expectation, cryptocurrencies and traditional stock markets rose together. If a large financial institution announces an increase in Bitcoin holdings, it will undoubtedly have a positive impact on the market, driving Bitcoin's price up, which is very beneficial for our position resolution. Conversely, if negative news arises, we will need to operate more cautiously.
In summary, when Bitcoin and Ethereum are stuck in positions, everyone must remain calm and avoid blind operations. One should formulate the most suitable strategy for themselves based on their actual situation and the above ideas for resolving positions. I hope everyone can get out of their positions soon and reap rewards in the crypto space!
