March 6, 2024 Bitcoin market analysis
1. Yesterday, Bitcoin fell from the highest point of 69,000 US dollars to the lowest point of 59,000 US dollars. This kind of market will often appear in the next bull market. Bull markets often plummet. Please remember this sentence. This wave of market conditions has exploded contract leverage. I have repeatedly emphasized never to make contracts. I have been exposed to Bitcoin since 2016 and entered the cryptocurrency industry in 2017. I have never made a contract so far, and I don’t even know how to open a position. The first thing the market has taught us during this crash is that we should never touch contract leverage. This cannot be emphasized enough.
2. I said in the article a few days ago that if you have a short position, you can enter a 30% to 40% position when Bitcoin stabilizes at 64,000 US dollars. After that, if it breaks through, you can put all the bullets in, but I emphasized that you must enter a position in Bitcoin. Bitcoin, not copycats. Once Bitcoin pulls back, copycats will inevitably be wiped out. Currently, Bitcoin is around 63,000 US dollars. In fact, there is not much floating loss, and it will rise back soon. If what you buy are copycats, just buy them now. I can pretend to be dead.
3. Assuming that in the current round of Bitcoin market before the halving, $69,000 is the highest point, then it will definitely test the high point again, repair the shadow line on the weekly line, try for a second breakthrough, and have a position in hand. Don't reduce your position, just hold it, or even cover it at a low point. But $69,000 is definitely not the highest point of this bull market.
4. Remember, when the market ends, it will not end with a sharp drop, but a slow decline, rising and falling at the same time, showing a volatile market. If you look at it from the hourly level, the high points continue to move downwards and the lowest points gradually fall below. This trend is the end of the market. So at present, I think the market is not over yet. We have to continue to observe the next trend to judge whether the market will reverse.
5. Operation suggestions: If we look at the daily line level, the lower shadow line accounts for 50% of the entire daily line. This is an obvious washout trend. If you hold the spot, don't panic and just hold it. Don't take it lightly. If you are cutting meat, you can cover your position appropriately. Now is a good time to enter a short position, so enter the market boldly. The worst trend is for Bitcoin to fall to around 59,000 US dollars again, testing the lowest point. Then the market can basically be declared to be over, but I personally think the possibility is very low.
