BTC is showing initial signs of strength. For those with low positions, it may be worth considering buying a bottom position and observing the situation.

BTC has been fluctuating around the 70,000 level for 40 days. In the market analysis in January, it was mentioned that BTC could take two paths: 1) wide-ranging fluctuations, trading time for space, or 2) a downward adjustment. Recently, BTC has shown initial signs of strength:

1) Not falling despite negative news. USDT's negative news, such as the rapid recovery after the CPI's negative news and decline, demonstrates strength in the face of negative factors.

2) Rising support at the bottom. The positions at which BTC has dropped are gradually rising.

3) Many previously popular altcoins have experienced declines of over 40%, reaching the depths of adjustments seen in a bull market.

Of course, the initial signs of strength in BTC do not necessarily mean that it's time to go all in. BTC may continue to fluctuate for a while, possibly just intimidating the market before returning to its original position, while altcoins may not recover.

The most crucial point, as mentioned in the referenced article, is that a major market movement is not imminent due to capital constraints. Since a major windfall is not on the horizon, it's best not to expect sudden wealth. On the contrary, the outcome for altcoins is uncertain. At the current stage, the market has formed a representative bias.

Representative bias is a common irrational behavior in behavioral economics. Simply put, after a recent phenomenon repeats several times, it becomes a behavioral norm. The current situation is that BTC falls repeatedly, and altcoins follow suit, but when BTC rebounds, altcoins rebound weakly. This results in BTC remaining BTC, while altcoins appear drastically different. After representative bias forms, it affects market behavior, exacerbating this phenomenon. It cannot be deciphered because it is an inherent irrational behavior in humans. Don't assume that if BTC has risen, the altcoins you bought should also rise. What you can do is wait for clear signals from BTC to change market behavior patterns.

Current trading strategies depend on your current position:

If your position is heavy, it is advisable to reduce some of it during a small rebound.

If your position is moderate, you can maintain the current status and wait for clearer signals from BTC.

If you are currently not in a position, it is advisable to consider allocating funds to buy a bottom position, as there are signs of strength in the market.

Lastly, it's worth mentioning that sometimes, waiting is also a good trading strategy.

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