As I mentioned in yesterday's communication, the market has shown signs of short-term overselling and technical divergence, reminding us to be cautious of the possibility of a 'false drop'. Last night, market sentiment improved, and Bitcoin experienced a strong rebound, with a volatility range exceeding 2400 points.
However, it is essential to recognize that the high volatility of the crypto market implies high risk. Every increase comes with the possibility of a pullback, and past performance cannot guarantee future results.
For the current market, the recommendations are:
For those holding positions: Consider setting stop-loss and take-profit orders to protect profits and manage risks effectively.
For observers: Do not blindly chase highs. Market opportunities always exist; it is advised to make careful decisions after thorough research and assessment of personal risk tolerance. The primary principle of investment is to preserve the principal.
