The trap of the dog dealer! The trend of Bitcoin is often contrary to cognition. What should we do next? Let's see the picture.
When Bitcoin fell below the consolidation zone on Friday, a lot of people felt that the sky was falling and it was going to be a big waterfall. They quickly stopped losses on long orders and opened short orders. But in the end, it was all fake moves by the dog dealer. They pulled it up, the short positions were blown up, and the long positions were cut at the lowest point.
Smart traders saw the AMD model and knew that it was a trap. If it fell below, it would be an opportunity to go long. We also bottomed out Sol, which has a larger fluctuation range, and the effect is good. So what should Bitcoin do next?
At present, Bitcoin has rebounded to 118,000, and long orders have made good profits, but I think it would be best if it could touch around 120,000 later to complete the distribution of the D stage. I think this way would be the most standard.
As for the short-term, it has risen a bit too much. I think it is acceptable to slightly step back to 117,000. If you are aggressive, you can arrange some long orders here. If you want to be safe, you can earn the previous profit and just watch the show. Try to go short in the resistance area near 120,000 and eat a step back.
I don’t think this rise will start a new bull market, because Bitcoin’s daily MACD has already crossed, and it is already very strong to be able to stay horizontal and form a box. Even if it breaks through the previous high, it is very likely to be a false breakthrough. Don’t be fooled. As long as it breaks through and falls back below the previous high, it is a weak signal, and Benqin will go short at that time.
The above are some theoretical references. The currency circle is now deeply tied to Wall Street, and often encounters some ups and downs caused by breaking news. If there is, we will see it at that time. I like big fluctuations because they often represent opportunities.