Crypto Circle News
February 4 Hot Topics:
1. The U.S. Department of Justice initiates a $200 million victim compensation program for the CLEU investment fraud case.
2. Vitalik: L1 self-scaling, L2 should focus on unique value rather than mere expansion.
3. The White House sets a red line, opposing the Democratic Party's proposed cryptocurrency legislation targeting Donald Trump.
4. Canada's CIRO releases a digital asset custody framework, clarifying layered custody and risk management requirements.
5. Solana's DEX trading volume in January reached $11.77 billion, accounting for about 35% of the total network.
Trading Insights
If you are losing money in contract trading, this article is worth a careful read. Please follow the advice below to ensure profitability:
Insights from an experienced trader:
Learn to take profits and cut losses:
The market changes quickly; taking profits controls greed, while cutting losses means letting go of sunk costs. Remember, money in the crypto world is endless, but the money in your account can run out. Ensure that every trade has a reasonable volatility tolerance.
Avoid frequent trading:
Frequent trading not only makes it difficult to profit from both long and short positions but also increases transaction fees. With high leverage, opening a position can result in a loss of 1-2 points, so ensure that every trade can be profitable.
Learn to stay out of the market:
Do not open positions when you do not understand the market; avoid blind trading. The market is unpredictable, and sometimes having no position requires more courage than holding one.
Progress gradually:
Investment is a process of gradual accumulation. Do not expect to get rich overnight; instead, gradually increase your returns through small investments and reasonable leverage.
Do not go all in with high leverage:
High leverage carries enormous risks; once the market reverses, you could lose everything. Stay rational and do not take risks due to momentary impulses.
Combine theory with practice:
This is the most challenging part. Sometimes even experienced traders find it difficult to achieve this completely. Remember, I was once a novice, unaware of the basic rules, opening positions at will. But over time, I understood the potential of the crypto world. I hope this article can help you avoid detours on your crypto journey.
LIFE IS LIKE
A JOURNEY ▲
Below are the real trading signals from the Big White Community this week. Congratulations to those who followed along; if your trades are not going well, you can come and test the waters.
The data is real, and each trade has a screenshot from when it was sent out.
**Search for the public account: *Big White Talks About Coins*
Bilibili and YouTube account: Daquan777
BTC
Analysis
The price of Bitcoin has fallen below the drop caused by the trade war last April. Not only that, but this is also the lowest price since Trump campaigned for president, aiming to make Bitcoin a strategic reserve, and the U.S. being recognized as the cryptocurrency capital. During the trade war, at least we knew the reasons, but this time it seems that liquidity is really poor, leading to significant sell-offs at the slightest market movement.
Looking back at the data, the actual turnover rate is not very high, which means the market has not entered a panic phase, and the turnover is mainly from short-term investors, with no significant signs of early investors exiting. This indicates that the selling pressure is not very high, and the steep drop is most likely due to poor liquidity and low buying volume. I will check the data tomorrow during the day.
Many are indeed saying things are not good; let's slowly rule out the reasons. I just saw that the government shutdown has ended, and the House of Representatives voted to pass it, which will soon be sent to Trump for signing. Let's see if the market can stop the decline; the current chip structure seems normal, and there is no significant change in large-scale chips. However, U.S. stocks are still falling, with the Nasdaq down 2.5%. If it is really just due to the shutdown, then it would be simple.
A pullback to around 74000-73150 can be a buying opportunity, with a rebound target of around 76000-77400. A rebound to around 78700-79000 can be a selling opportunity, with additional buying around 80400, targeting around 77600-76200.
ETH
Analysis
Today, U.S. stocks are also falling, and the decline started after the market opened. The pre-market CME U.S. stock futures were performing well, indicating that at least Asian and European investors in the main trading time zones were not selling off significantly. When the U.S. stock market opened, it was initially up, then fell all the way down. I wonder if this is due to pessimistic expectations regarding the U.S. government shutdown.
Aside from that, the only other thing I can think of is the geopolitical conflict between Iran and the U.S., but it doesn't seem quite like that. However, we will know tomorrow. As of now, the House of Representatives is voting on funding; if it passes, the shutdown will likely end. If the decline is due to the shutdown, there should be a rebound after it ends; if not, it could be more troublesome.
A pullback to around 2167-2118.8 can be a buying opportunity, with a rebound target of around 2335-2490.
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 may have some lag. If you have any questions, feel free to consult.
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