Buying the dip gets you liquidated, shorting brings harsh truths, a midnight rebound still requires shorts!

CN
2 hours ago

All the way shorting has been quite exhilarating, from last week's 88,000, 90,000, 91,000, and 92,000 down to 93,000, and Ethereum from 2,900, 2,950, 3,050, and 3,100 has also been shorted down. Everyone has not been let down; the monthly line is closing, and the market opened lower on Monday. Everyone's short positions have successfully been relieved, and profits have been made. During the day’s live broadcast, a short was given at 86,700, and in the evening, a short was given at 86,500, all making profits along the way. Who hasn’t kept up?

The current price of Bitcoin is around 84,880. The daily K-line is narrowing, with both the upper and middle bands of the Bollinger Bands moving downwards. Last week's rebound was also under pressure from the middle band. Today, a large bearish candle has directly smashed down, reclaiming last week's gains. I wonder how the masters who called for bottom fishing at 90,000 and said it would go to 100,000 are doing now. I also wonder if everyone who bottom-fished has been liquidated. It is important to note not to be too anxious and aggressively chase shorts. Although the market is in a bearish trend, the space for the lower band is getting smaller, and the lower band has not yet opened downwards. Overly chasing shorts may easily lead to being trapped in the short term.

In the short term, the 4-hour Bollinger Bands are wide open, with prices moving lower, and the lower band is following downwards. The MACD continues to show increasing bearish energy, while the KDJ and RSI are both oscillating downwards. The midnight strategy remains focused on high shorts, with resistance above at 86,200 and 88,000, followed by strong resistance at the round number of 90,000. Support below is at 84,000, 82,000, and 80,000, with this week looking to test the 80,000 level.

Ethereum is performing even weaker, with a current price around 2,740. The daily K-line Bollinger Bands have even less space at the lower band, and the KDJ's three lines are converging to form a death cross downwards. The operation should primarily focus on shorting at highs, which is undoubtedly the case, as has been said many times. The midnight resistance is at 2,780 and 2,850, followed by the round number resistance at 3,000. Support below is at 2,720, 2,680, and 2,600.

It is said that good advice is hard to give to the damned. Zhong Liang has been calling for high shorts, but looking at the liquidation data, it is truly heartbreaking. In the past 24 hours, over 262,616 people have been liquidated, with long positions liquidated for 870 million USD. In the past 12 hours, long positions liquidated for 330 million USD, in the past 8 hours for 160 million USD, and in the past hour for 8.93 million USD…

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