Bitcoin is in a precarious situation! Will there be a big drop? Is Ethereum's fake breakdown real? Let's take a look.

1. Early this morning, Bitcoin and Ethereum both faked a breakdown of previous lows and began to rebound, but the rebound strength is not strong, and now they have dropped back near the previous lows, showing very weak momentum, which is not a good signal. $BTC

2. However, our operating philosophy has always been cautious. Even though we are bearish, we do not short at low levels, especially since there are many fake breakdowns in the cryptocurrency circle that lure traders into shorting. This was specifically mentioned by Shu Qin yesterday, and indeed, there was a real fake breakdown last night. So how should we operate now?

3. Therefore, the current trading opportunity is to short after the rebound, as shown in the chart. Shu Qin mentioned yesterday that Ethereum should short when it rebounds to the upper edge of the 2980-3000 oscillation zone. We also noted this, and it indeed reached 2988. At such times, entering the market feels more relaxed, and Ethereum has dropped back again. $ETH

4. The reason is not hard to understand. Shu Qin mentioned that it is currently the Christmas holiday, and institutions are not really working, leading to fewer major market movements. Recently, our operations have been focused on arbitraging during oscillations. Each time Ethereum approaches 3000, we can short a position. We have been doing this for a week now, shorting 4 or 5 times with very good results.

5. As for the long-term positions, Shu Qin also shared them in the chart, and everyone can take a look. My long-term short position is still held, as the bottom has not yet arrived. I have shorted ICP and FIL for two months now, at least until the middle or early next year. Then we can talk about bottom fishing. I will pay attention to SOL and some quality altcoins for bottom fishing. $SOL

6. So our strategy now is to trade short-term swings, mainly focusing on shorting at highs, especially when the price rebounds to various resistance levels. We can try to catch a pullback, while the long-term position is to hold low-leverage short positions, avoiding liquidation, and steadily waiting for the bottom to arrive in mid-next year. When that happens, we can go all in and create miracles. Sounds good!