A lot of people ask me: Shengyi, with HYPE dropping like this, am I stuck? Don't worry, today’s article, no exaggeration, will help you find a way out from the candlestick charts.
So what now? Should I hurry to cut losses and run?
Don't rush to cut. You need to understand that even in a downtrend, there are opportunities to make money. The key is to know where the 'resistance' and 'support' levels are. It's like in a battle; you need to know where the enemy's stronghold and our trenches are.
There is significant resistance above: around $34 is the first hurdle, and $37 is like a 'high-voltage power grid'. In this situation, do you think you can just charge up in one go? That's as difficult as climbing to the sky. So, if you still have assets, every time it rebounds to around $34, that's your chance to reduce your position or tentatively open a short. Remember, it's 'tentative', don't go all in!
So the question arises: where will it drop to?
Look below; the first line of defense is in the range of $31.5-$28. This is a potential rebound area in the short term. Savvy traders can take small positions here to bet on a rebound, quickly in and out, and grab some profits before running away. But remember, this is just a 'rebound', not a 'reversal'.
Where is the real bottom? Looking at the chart, around $25! This is the 'strong support' area where this wave of decline may truly stabilize. Don't rush to call for bottom fishing before it has reached the bottom.
Saint Yi's viewpoint: Don't think about bottom fishing right now; the trend has already turned bearish. Looking at the chart, both the MACD white line and yellow line have dropped below the 0 axis, forming a death cross. This is not a 'pullback'; it clearly tells you: the bears have taken over the market.
Why do I say that now is an 'observation state'? Because the real storm may not have arrived yet.
Looking at the liquidation data, over ten million dollars were liquidated in 24 hours, with long positions accounting for the majority. What does this indicate? It shows that leveraged long positions are still being cleared, and the market hasn't panicked to the extreme yet. When everyone is in despair, perhaps the turning point will quietly arrive... But can you seize that opportunity now?
I will announce the specific direction and levels in the village. Those who want to fight alongside the villagers of Saint Yi, hurry up! If you miss the big recovery opportunity, when will you be able to wait for the next bull market? Follow Saint Yi, become a villager, and let us help you grab the key to wealth!#hype $HYPE
