In the cryptocurrency market, the recent interest rate cut by the Federal Reserve has caused quite a stir, affecting mainstream coins like BTC and ETH. Moreover, there are rumors from the U.S. stock market about a possible 'triple whammy' risk in the next two weeks, which undoubtedly adds pressure to an already unstable currency market.
I have also experienced losses and gains in trading myself. For example, on Tuesday, I shorted BTC and ETH, only to be taught a lesson by the market, hitting my stop loss directly. However, in the market, no one can always be right; if you are wrong, you have to admit it, which is how one can survive in this unpredictable market.
From the perspective of short-term market trends, everyone currently believes that the market will rise, but a closer analysis reveals that the upward momentum may not be that strong. Trading volume has been shrinking, and there has been a formation of a 'evening star' candlestick pattern, indicating that the driving force behind the rise is weakening, with risks of a pullback. Although the short-term moving averages look decent, with a bullish arrangement and golden cross, showing some upward momentum, the issues of shrinking trading volume and the RSI indicator being overbought cannot be ignored. They are like hidden bombs that can reverse the market at any time. Moreover, the 'evening star' is a strong reversal signal, which suggests that the likelihood of a market decline in the near future is quite high.
Regarding the operations with BTC and ETH, I also have my own views. BTC is currently fluctuating in the range of 94500 - 95000. If it can rise above 96500, it might be worth considering increasing the position, with the target set at 92800 - 91000. If the price continues to fall, then we should look at the area around 90000 - 89000. As for ETH, it is in the range of 3150 - 3180, with a short position structure at 3050 - 2980. If there is a valid drop in the body, we need to pay attention to the key point at 2900. However, when everyone operates, they must flexibly adjust their defensive positions according to their own positions, as the market changes too quickly, and no one can predict what will happen in the next second.
In short, when investing in the cryptocurrency market, it is essential to remain calm and not blindly follow the crowd.
Recently, I plan to ambush a potential coin that is ready to explode; doubling is quite simple, and an expected range of 5-8 times is not a problem. If you want to join the discussion, directly share in the chat room.
