In the midst of strategizing, we decide the outcome from a thousand miles away. Hello everyone, I am Lin Chao, a global financial market observer, focusing on cryptocurrency market analysis, bringing you the most in-depth trading information analysis and technical teaching.

Lin Chao has been on vacation recently, and I have basically cleared my previous positions. Consider it luck, or preparation; in any case, I have avoided the tragedy of 1011. Many fans have messaged me urging for updates, hoping I can analyze which direction the market will head after 1011.

In fact, the freeze of three feet is not a day’s cold. I had a premonition earlier. When some fans messaged me, I privately told them that I felt the bullish trend was about to ease, and the market might enter a cyclical downward trajectory. Up until the 4th, I was still advising some users who were following my trades to liquidate their spot positions and prepare to hedge with short contracts. However, there were still some stubborn users who thought I was being alarmist, and their distrust led to more despair, which is scarier than the market itself.

The market is like this, filled with various voices, so many that it’s hard to discern the truth. But everyone must remember, no matter how the market moves, whether up or down, no one can make money all the time, but there will always be someone making money. Even during such black swan events, on the day of 1011, some people made 2 billion; this is the charm of this market. To survive in the crypto market, we need to have our own judgment and our own set of trading rules. As I have always emphasized, you need to have your own trading system, rather than following the crowd.

I did not publish an article immediately when 1011 happened because the market needed calm, and I needed to observe the market. Many people analyze the market and say that this black swan event was a chain reaction caused by Trump’s tweet, a stampede that happened in a short time. But such statements, in my eyes, are just hindsight wisdom, without any meaning. The market can harvest us without needing a reason; it only needs an excuse. The real reason is never made public. After rising for more than four months, the bulls became overheated, and the cost of holding leverage was very low, necessitating a purge of the bulls. It’s just about getting the low-cost leveraged holders out of the market. As for the news aspect, whether it’s Trump’s remarks or a statement from Powell, any event can trigger such market movements.

Many of Lin Chao's fans are heavily invested in SOL, so let’s analyze SOL in detail from the market perspective. The known information we have is that first, all long positions have been cleared, and second, the previous high has not been broken, with the highs getting lower. Moreover, the anticipated SOL ETF has not materialized, leading many holders to doubt SOL's future prospects. From the index perspective, if the index remains below the 30-day moving average for the next two weeks, we can conclude that the short-term trend will be a cyclical downward one, and this trend will at least aim for a monthly adjustment. Therefore, the key information is whether the index can stabilize above the 30-day moving average. I personally do not expect SOL to have a dazzling performance in the short term because it carries too many retail investors. Even if the ETF narrative is completed, there won’t be much capital flowing into this chain. I advise users who still hold high expectations for new highs in SOL to be cautious with their positions. Even if the market rises, knowing when to take profits is a profound skill. Until the end of the fourth quarter, I will reduce my spot holdings and keep positions ready for short contracts.

Speaking of contracts, many people are terrified, thinking that trading contracts is a deadly way to be harvested. I can only say that either you have been brainwashed by marketing accounts, or you have been in this market for too short a time. Everything has two sides; water can carry a boat and also capsize it, but existence is reasonable. I have emphasized countless times that contracts are just tools in our hands. Once a bearish trend is confirmed, how do you plan to protect your profits? Should you just silently hope that the market will rise one day? Have you ever experienced the manipulators repeatedly pulling at the bottom, always keeping your positions below your cost? In short, if you come to this market, you must accept it and make good use of all available means to protect your interests. Of course, the premise is to protect your principal.

If you are in a state of confusion—don’t understand the technology, can’t read the charts, don’t know when to enter the market, don’t know how to set stop losses, don’t understand take profits, randomly increase positions, get stuck while trying to catch the bottom, can’t hold onto profits, miss market opportunities… these are common problems for retail investors. Lin Chao can help you establish the correct trading mindset. A single profitable trade is worth more than a thousand words; finding the right direction is better than repeatedly failing. Instead of frequent operations, it’s better to strike precisely, making each trade more valuable.

The success of investment depends not only on choosing good targets but also on when to buy and sell. Protecting your principal and making good asset allocation is essential for steady progress in the ocean of investment. Life is like a long river flowing into the sea; what determines victory or defeat is never the gains and losses of a single pass or a moment, but rather planning before action and knowing when to stop to gain.

The global market is ever-changing, the world is a whole; follow Lin Chao to gain a top-tier global financial perspective.

This article is merely a personal opinion and does not constitute any trading advice. The crypto market has risks; invest cautiously!

For real-time consultation, feel free to follow the public account: Lin Chao on Cryptocurrency.

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