Brothers, I am Mig, cheer up, these two days are tough battles.
Let's get straight to the point, looking at the four-hour chart of BNB, three words summarize: very dangerous. The white line has just crossed below the yellow line, forming a 'death cross', but strangely, both lines are still hanging above the zero axis—this is called a 'high position death cross', one of the most dangerous signals indicating a trend reversal from rise to fall.
The volume has shrunk, indicating that the bulls dare not buy, and the bears have not yet made their move. Right now is the kind of calm that suffocates before the storm.
The news is hiding a knife, do you understand?
This is the focus of today! Many people only look at the technicals, but ignore the bigger picture.
Yesterday, the Federal Reserve sent a significant signal: the tapering has ended, and they may start 'expanding the balance sheet' next year. An expected monthly purchase of $35 billion amounts to over $400 billion in a year!
What does this mean for the cryptocurrency market?
Short term: Market liquidity tightness may ease. Once US dollar liquidity relaxes, funds may flow back into high-risk assets, including cryptocurrencies.
BNB logic: As the leading exchange platform coin, BNB is extremely sensitive to liquidity. Once the market expects liquidity to improve, it often reacts faster and with greater elasticity than Bitcoin.
Therefore, the current decline may be digging a 'golden pit' for the next wave of liquidity-driven rise.
The technical aspect has sounded the alarm: this is not an ordinary pullback.
The current price is testing the first support area of 880-870. I've mentioned this range many times; it is the last dignity of the daily bullish trend. If it holds, the first rebound target looks at 910, the second target at 930, with strong pressure at 950.
But if the closing price effectively breaks below 870, the structure will be damaged, and the next stop is likely to head towards around 830 to find bottom support.
The current market situation is: shrinking volume, a tug-of-war between bulls and bears. What does this indicate? It indicates that retail investors are observing while the main force is testing. This is the time when surprises are most likely to occur; either a big bullish candle blows up the bears or a big bearish candle crushes the bulls.
My personal judgment is that BNB is likely to test downwards again, first checking if 880 can hold. If it holds, there may be a slight rebound to around 900; if it doesn't hold, the short-term support is at the 875-870 range.
What should retail investors do now?
Position management: If you are heavily invested, take some profit and withdraw your capital when it rebounds to the 910-930 area. If you are lightly invested or not invested at all, patiently wait for two positions:
Optimistic plan: Gradually build light long positions in the 880-870 support area, with a stop loss set below 860. Bet on a daily support rebound.
Conservative plan: If it breaks below 870, don’t rush to catch the falling knife. Wait for the 830-840 bottom support area to consider entering gradually, and set the stop loss at 820.
Mental preparation: The market is born in despair and rises in hesitation. The market is currently in the 'hesitation' phase. Don’t get shaken out by short-term fluctuations, and don’t go all in at once.
For fans wanting to recover losses, find Mig Village, follow this month’s operations; with a 10x coin, you call the shots. Who would have thought it would drop so much in a day? Mig will rotate operations tomorrow. Fans wanting to keep up should find Mig Village, where Mig announces entry and exit points every day!
