Gold is insane! It's already reached $5400? US stocks plunged 2% pre-market! Will Bitcoin escape unscathed? Wall Street is about to open tonight, let's take a look. 1. As the saying goes, "When the cannons roar, gold soars." Gold prices have risen very rapidly, but one thing to note is that every war has a beginning and an end, and it could end at any time, at which point gold prices will plummet. Therefore, those who are long on gold should consider exiting at higher levels, as it's very close to its previous resistance level. 2. I didn't chase gold because it has risen too much in recent years, and there's too much profit-taking. I opted for a different approach and went to US stocks. My previous short positions in Nvidia and Tesla have yielded substantial profits, and the Nasdaq has already plunged 2% pre-market. Binance has already listed Tesla futures, and hopefully, more US stocks will be listed. 3. What about Bitcoin? How should one trade Bitcoin? Because BTC is traded 24/7, it's not limited to trading only during Wall Street hours. Therefore, the negative impact was already priced in over the weekend. As shown in the chart, the candlestick pattern forms a converging triangle, indicating that market panic due to the war is significantly diminishing, resulting in lower volatility. 4. Therefore, there's no need to overinterpret the war when trading Bitcoin; the biggest negative impact has already been priced in. Now, we just need to see when the war ends, which could trigger a Bitcoin rally. Until then, our trading should still focus on support and resistance levels. 5. I will pay close attention to the support level around 63,000. If it reaches that level, I will definitely buy some spot Bitcoin and wait for the conflict to end. I will also place short orders starting at the resistance level of 70,000, with significant support and resistance levels as support levels. A 2,000-point pullback shouldn't be a problem. 6. So, when war breaks out, gold rises and US stocks fall—these are very simple trading scenarios. We also had opportunities to sell near the 70,000 resistance level and buy spot Bitcoin near 63,000. Remain calm and composed in the face of events. The volatility caused by the war is actually an opportunity for us to make money. Don't rush, take it slow and steady.
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