Short Cycle Rating:
Long-term rating: Overweight
Short Cycle Rating:
Today's point of view
Small market capitalization cryptocurrencies are waiting for an opportunity to reduce holdings
Today's point of view
On the daily line level, Bitcoin is still in progress on the daily line. At the daily line level center, that is, the lower edge of the purple box is supported at $52,000. When the center is oscillating, the main factors that dominate the market are disorder and Chaos is the time to get twice the result with half the effort, that is, investors may spend 80% of their time and operations to create 20% of the profits.
We do not recommend investors to do too much operation here. Premature choice of direction may easily become cannon fodder in the long-short fight. Rational investors should wait patiently for the end of the long-short game and wait for the market to choose a direction before following.
In terms of the market, whether it is a strong short-term rising scenario that is directly reversed or a long-term scenario that is weak and healthy, we have a better position to operate. If it is a reversal scenario, we can wait for Bitcoin to break through $57,500 and stand firm Well, consider intervening again.
If it is a weak and healthy callback script, we can wait for a clear buying point after the market falls, and then consider buying. At that time, we can rest assured to welcome the second half of the bull market. Of course, such buying points and opportunities need timing, and the timing is the market. given.
The problem investors are facing now is that they want to consider reducing their positions to avoid risks. What should they do? Do you choose to sell when it is falling? We can understand that when a loss occurs, human nature will drive emotions, and then force us to do something to prevent further losses from happening, but this is not feasible in the investment world, and it is also the reason why investment is anti-human.
Qualified investors need to sell when rising and buy when falling. When rising, people will be optimistic, greedy and hope to rise more, and are unwilling to sell. When falling, people will be pessimistic and panic. It fell even lower, and it was tempting to sell immediately. This is the reason why only a few people make money in the market, because most people are driven by emotions instead of investing according to logic and strategy.
From the daily level, investors who want to reduce their positions to avoid risks must wait patiently for a rebound at the daily level. At that time, the rebound will return to the range of $58,000-60,000. Investors need to wait patiently for the second sell on the daily line Then consider reducing positions, don’t step on the low position because of panic, wait until it rises, and then regret and greedy to chase higher. This is the most taboo operation in the market, and it is also the most money-losing operation.
In terms of Ethereum, from the exchange rate chart of Ethereum and Bitcoin, it can be clearly seen that Ethereum is in a stronger market relative to Bitcoin, which is in line with our previous judgment that Ethereum will start a potential big market, but the strength of Ethereum After all, it is impossible to break away from the shackles of Bitcoin. After Bitcoin falls and stabilizes, Ethereum may start an independent upward trend. However, the risk that investors need to pay attention to is that if Bitcoin leads to a collapse in the market, Ethereum will not be able to survive alone, and it is necessary to pay close attention to Bitcoin. The decline of the currency stabilized.
Bitcoin’s market capitalization is currently hovering around 51%, and there is still 1% space away from the historical support level. We maintain the judgment that small market capitalization cryptocurrencies are waiting for an opportunity to reduce holdings.
