The market has just gone through a rough patch. After nearly hitting $60,000 during a recent crash, Bitcoin is now trying to stabilize around $70,000. For many, the urge to engage in revenge trading is strong tonight. Here are a few reasons why you should remain calm.
1. Sentiment Analysis: "Extreme Fear" and "Dead Cat Bounce"
Sentiment indicators show clear fragility. Even with the rebound, volume remains low. Technical analysis associates a rebound with low volume with a Dead Cat Bounce, which is a short-term rise followed by another fall.
Tip: Don't confuse a technical correction with an uptrend.
2. Whale Movements
Enterprises like MicroStrategy and Bitmine continue to accumulate massive amounts of ETH (over 80,000 ETH for Bitmine in two weeks). When you panic, institutions buy. Watch the outflows from exchanges tonight: if BTC is being transferred to cold wallets, it's a signal of long-term bullish confidence.
3. Strategy for the Asian Session
The upcoming Asian session often dictates the trend for the following day.
Key support to watch: $68,500
Resistance to break: $72,000
Conclusion: The secret to success in crypto isn't predicting the future, but managing risk. If your stop-loss isn't set, then you're not trading, you're gambling.
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