Cryptocurrency News
March 11 Highlights:
1. Trump plans to sign a new executive order to lift restrictions on crypto banks and adjust stablecoin regulations.
2. Paraguay and El Salvador sign an MOU to strengthen cooperation in digital asset regulation.
3. Sol Strategies acquires three Solana validators and appoints Michael Hubbard as Chief Strategy Officer.
4. SEC Acting Chair Mark Uyeda pushes to withdraw the proposal to expand regulation of crypto exchanges.
5. Coinbase plans to launch 24/7 Bitcoin and Ethereum futures contracts in the U.S.
Trading Insights
What to do when encountering false breakouts in trading? False breakouts are common in trading. After setting a stop-loss, what should you do when you encounter one?
What is a false breakout? A false breakout occurs when the price breaks through a key support or resistance level but does not continue in the breakout direction, quickly returning to the original price range. For example, if a stock price breaks above a previous resistance level, briefly rises, but then quickly retraces back below the resistance level and starts to decline, those who chased the price up get trapped; this is an upward false breakout.
Why do false breakouts happen?
Insufficient volume: A true breakout usually sees a significant increase in volume, driven by new funds pushing the price. In a false breakout, the volume is low, or it quickly decreases after the breakout, lacking the momentum to sustain the new price.
Market manipulation: Large funds or institutions may deliberately create the illusion of a breakout to attract follow-on trading, then operate in the opposite direction. Many traders set stop-loss and limit orders at key levels, causing temporary price fluctuations. Without subsequent buying or selling support, the price returns to its original position. Some may also create false signals using undisclosed information.
How to identify a false breakout?
Check the volume: If the volume does not significantly increase during the breakout, it is likely a false breakout; true breakouts usually have larger volumes.
Check the duration: False breakouts last a short time, with prices quickly returning to the original range. If the price cannot stabilize in the new position for a day or two after the breakout, it may be a false breakout.
Multi-indicator verification: Combine multiple technical indicators for judgment. If only the price breaks out while other indicators do not confirm, the likelihood of a false breakout is high. True breakouts have small retracement amplitudes and can find support, while false breakouts have larger retracement amplitudes. If there is no significant news and market sentiment has not changed due to the breakout, it may also be a false breakout.
How to handle a false breakout?
Decisive stop-loss: Upon discovering a false breakout, you must decisively stop-loss. Theoretically, you could wait for effective confirmation before exiting, but in practice, waiting for confirmation carries significant risks. The more critical the support or resistance level, the more volatile the market will be after the breakout. Delayed confirmation can lead to risks far exceeding the original plan, and the standards for effective confirmation can be vague, affecting stop-loss execution. Therefore, it is essential to strictly enforce specific stop-loss points.
Accept losses: It is normal to have a certain percentage of losing trades in overall trading, which is the cost of avoiding significant losses and capturing major trends. After a stop-loss due to a false breakout, if the price returns to the original position, it may seem like a loss, but from an overall perspective, reasonable stop-loss can ensure capital safety and achieve profitability. Just like gambling, although frequent stop-loss mistakes occur, ensuring that capital does not get wiped out and losses do not exceed 10%, while profits far exceed losses, makes one a winner.
Reverse operation after confirmation (suitable for experienced traders): Investors with experience and high risk tolerance may consider reverse operations after confirming a false breakout. For example, after being cut off twice by false breakouts, entering in the opposite direction after the third confirmation may yield significant profits, but the risk is high and requires careful operation with various analytical tools.
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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.
Data is real, and each trade has a screenshot from the time it was issued.
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BTC
Analysis
Bitcoin's daily chart fell from a high of around 84050 to a low of around 77450 yesterday, closing around 78600. Support is around 77800; if it breaks, it could drop to the MA360 yearly limit. A pullback can be bought near this level. Resistance is near the MA200; if it rebounds to this area, it can be sold short. MACD shows increasing bearish momentum, forming a death cross. On the four-hour chart, support is around 78450; a pullback can be bought near this level. Resistance is near the MA14; if it rebounds to this area, it can be sold short. MACD shows decreasing bearish momentum.
ETH
Analysis
Ethereum's daily chart fell from a high of around 2150 to a low of around 1810 yesterday, closing around 1865. Support is around 1800; if it breaks, it could drop to around 1750. A pullback can be bought near this level. Resistance is near the MA7; if it rebounds to this area, it can be sold short. MACD shows increasing bearish momentum. On the four-hour chart, support is around 1810; a pullback can be bought near this level. Resistance is near the MA7; if it breaks, it could drop to the MA14. If it rebounds to this area, it can be sold short. MACD shows increasing bearish momentum.
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 has a certain lag. If you have any questions, feel free to consult.
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