Zongheng Freely: The anticipated pullback has materialized, pay attention to the trend changes starting next week.

CN
15 hours ago

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First of all, congratulations to those friends who have followed our operational advice to short the market; you have once again profited from this wave of corrective decline. The market trend is as we expected; it first rebounded to complete the upward liquidity clearing, giving us a layout space at the position of 106500. Subsequently, the market declined, with the low point reaching around 102300. This trend is basically in line with our predictions. In the previous phase of consolidation, our analysis indicated that under low-volume fluctuations, the probability of a market reversal increased significantly. If there is a rally, there will be a sell-off; if there is a sell-off, there will be a rally afterward. The result was as expected, a very perfect market trend, and we ultimately captured this wave of corrective profits.

In the corrective market, liquidity was first cleared. After yesterday's market, the liquidity in the market has been almost cleared. Currently, the short-term clearing intensity is only slightly present around 104200 and 102300. Additionally, the rebound from yesterday still has short liquidity remaining above around 107000. Today is also the weekend, and it is likely that we will enter a low-volume consolidation market over the next two days. During this consolidation, liquidity will also be re-accumulated. In terms of time cycles, to have a new market trend, we should wait until Sunday night and early Monday. It is also important to note that after reaching the low point of the decline yesterday, the current spot premium index finally shows signs of no longer declining. If there is a price drop and an increase in premium over the weekend or next Monday, it indicates that market funds are starting to buy back in the spot market, which may also provide good entry points for long positions.

On the technical front, from the daily chart, yesterday closed with a long upper shadow candlestick, and it is currently under pressure from various moving averages. It is noteworthy that the coin price has been running below the MA7 daily line for several days, and the short-term MA7 has become the key for the market. Structurally, at least on the daily chart, the closing must be above the MA7 line to welcome a trend change. In terms of technical indicators, the MACD is still in a bearish cycle. According to the operational rules, when the market converges to the extreme within a certain cycle, it usually requires a catalyst for change. Perhaps we are waiting for another opportunity after a further dip. Other indicators are also operating at relatively low levels. On the daily chart, it is important to note that if it continues to dip and breaks below around 97500, the structure will be very weak, and the subsequent bullish rebound may not be strong enough. As for how it will move, we will observe based on the specific situation.

On the four-hour level, the market is experiencing low-volume fluctuations after the dip. Since it is the weekend, this fluctuation should continue for a while. Currently, there is not much reference from the four-hour level. The timing of the low point is not ideal because it was quickly reached during a rebound. There is also no visible bottom divergence structure, so it is currently difficult to judge whether there will be another new low. Generally speaking, according to this trend, the best scenario would be another dip followed by a rebound, which would create a better oversold rebound structure on the four-hour chart. Let's wait and see.

In terms of operations, I am currently continuing to hold the short position above 108000. I personally prefer to trade trend positions, and yesterday's decline did not reach the target take-profit level around 101000. Therefore, my plan is to reduce my position and move the stop-loss down to continue looking for a long opportunity after a dip, possibly targeting a long position around 101000-101500. For the rebound, the short position can be set when it first touches around 105000.

Ethereum was originally planned to short around 2580, but it seems the rebound fell a bit short, only reaching around 2070. This led to some friends shorting while others did not, and then the market corrected down to provide a long position around 2400, which is currently held. This is also what we have been discussing recently; Ethereum has shown low volatility, and as analyzed before, in such cases, once Ethereum chooses a direction, it is likely to be a significant trend. So, do you think it will go up or down? Feel free to comment and discuss.

【The above analysis and strategies are for reference only. Please bear the risks yourself. The article is subject to review and publication, and market conditions change in real-time. The information may be outdated, and strategies may not be timely. Specific operations should be based on real-time strategies. Everyone is welcome to contact and discuss the market.】

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