Little Seven

A Tale of Two Extremes! Bitcoin ETF sees funds flowing back while Ethereum faces heavy selling; how to secure profits on short positions amidst volatility?

1. The Bitcoin spot ETF is witnessing a return of funds, but the Ethereum ETF is currently under heavy selling pressure. The divergence between long and short positions in the crypto market is intensifying, with BTC and ETH continuing to fluctuate within a range. For the short positions we previously established at high levels, which nodes should we seize to take profits now?

2. Personally, I am considering a dual strategy. Currently, BTC is quoted at $87934.3, and ETH at $2920.13, both approaching critical support levels. BTC has dipped to the previous low of $87037.4, while ETH has touched the recent low of $2787.25. Given that we shorted BTC around $91,000 and ETH around $3,000, I believe we can take profits partially at the support levels of BTC $87,000-$88,000 and ETH $2,880-$2,900, and see if the support holds for a rebound. I am particularly paying attention to resistance near BTC $91,200 and ETH $3,030.

3. As for the remaining short positions, I will hold onto them until the Federal Reserve's interest rate meeting concludes. The ideal scenario at that time would be for the support level to break, leading to a deep correction, allowing us to capitalize on a significant move. However, if the support holds and does not break, we have already locked in some profits, allowing us to attack when possible and defend when necessary, ensuring we don't miss out on gains due to market reversals.

4. In summary, the market is currently awaiting a direction choice, and our strategy has shifted from shorting at highs to taking profits at support. We decisively established positions when the market faced resistance during the previous rally, and now, during this current fluctuation, we are taking profits in batches—without greed, without hesitation; maintaining rationality is key to seizing more opportunities.