Crypto Circle News
October 28 Hot Topics:
1. A whale deposited 5.058 million USDC into HyperLiquid and opened a 10x leveraged short position on ETH.
2. Ethereum treasury company ETHZilla sold 40 million USD worth of ETH for a stock buyback plan.
3. F2Pool co-founder: BIP-444 is a bad idea, opposing any soft fork operations.
4. Federal Reserve observation agency: The combination of Fed rate cuts and balance sheet reduction may boost market risk appetite.
5. Lighter responds to HYPE abnormal trading incident: No liquidation triggered, abnormal shadow lines have been hidden in the front end.
Trading Insights
Four Major Stages of Institutional Involvement in Digital Currency: A Practical Breakdown from Accumulation to Distribution
Accumulation Stage: The period when institutions "quietly accumulate coins." The core action of institutional funds during this stage is to collect chips at low prices, with institutions being the main buyers and retail investors mostly being sellers. From the market characteristics, it can be judged through the relationship between volume and price: when the price of digital currency is in a low range, there will be a stepwise increase in volume (trading volume gradually increases), accumulation (continuous large transactions), and simultaneous rise in volume and price (price rises in sync with trading volume). These characteristics correspond directly to the chip distribution chart, reflecting that institutions are steadily accumulating.
Rally Stage: The profit-taking period when institutions "push up coin prices." After completing accumulation, the price of digital currency will move away from its cost zone, and institutions will begin to realize paper profits. During this stage, institutions will use a small portion of funds to wash out (consolidate and clean up retail investors' floating chips), while most chips remain unchanged; corresponding to the chip distribution chart, a large number of chips still occupy the bottom area, which is the core holding of institutions, aiming to wait for subsequent high-level cashing out and further push up the coin price.
Peak Stage: The signaling period when institutions "prepare to exit." When the price of digital currency is at a high level, if a large number of chips suddenly disappear from the bottom area, it is a clear sign of institutions preparing to distribute. The key characteristics of this stage are: low-level chips continuously move to high levels and form a dense accumulation at high levels, while the market turnover rate significantly increases (a large number of chips are exchanged at high levels), indicating that institutions are accelerating the transfer of chips, and the coin price is about to peak.
Distribution Stage: The final period when institutions "cash out and exit." After institutions complete profit-taking at high levels, market chips will be fully concentrated in the high range, with no institutional holding chips at the bottom. At this point, the institutional distribution action has been completed, and the digital currency will lack upward momentum; investors should not continue to hold and should immediately take stop-loss or take-profit actions to avoid being trapped.
LIFE IS LIKE
A JOURNEY ▲
Below are the real trading signals from the Big White Community this week. Congratulations to the friends who followed along. If your operations are not going smoothly, you can come and test the waters.
The data is real, and each order has a screenshot from the time it was issued.
**Search for the public account: *Big White Talks About Coins*
BTC
Analysis
Bitcoin's weekly chart shows a bullish engulfing pattern, signaling a rebound, but it does not constitute a reversal; key resistance above: 117500-122000 area; the daily structure has broken the descending trend line, but yesterday's hammer candlestick, with increased volume, indicates that if the daily line holds above the descending trend line around 111800, a rebound trend may continue; both MACD and RSI show golden crosses upwards, indicating the possibility of a continuation of the bullish structure; for short-term levels, pay attention to the 4-hour chart, short-term opportunities are waiting to act;
In the short term, on the 4-hour level, it is currently operating in an upward channel, with support at the lower channel line around 111700 (which also resonates with the neckline position of the W bottom).
For the rebound, pay attention to the upper channel line resistance around 117500 (which is also the pressure of the previous consolidation platform); if broken, the next resistance is around the starting drop position of 121000.
In terms of indicators, MACD and RSI show downward trends, indicating a bearish arrangement.
Operational thoughts: Here, the W bottom is pulling back to the neckline; if it holds, you can monitor the market and go long in the direction; you need to keep an eye on the market;
You can also observe the pressure level for upper shadow lines; if the pressure level shows resistance with a long upper shadow, then go short.
ETH
Analysis
Ethereum's daily line dropped from a high of around 4255 to a low of around 4090 yesterday, closing around 4120. The support level is around 4070; if it breaks, it can be seen near MA7. A pullback can be made to buy near this level. The resistance level above is around 4150; if broken, it can be seen near MA90. A rebound to this level can be used to short. MACD shows bullish momentum. The 4-hour support level is around 4075; if broken, it can be seen near MA120. A pullback can be made to buy near this level. The resistance level above is around 4160; if broken, it can be seen near 4215. A rebound to this level can be used to short. MACD shows a decrease in bullish momentum and has signs of forming a death cross.
Disclaimer: The above content is personal opinion and for reference only! It does not constitute specific operational advice and does not bear legal responsibility. Market conditions change rapidly, and the article has a certain lag; if there are any unclear points, feel free to consult.
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