Master Discusses Hot Topics:

Let's talk about Trump first on Monday. This wave is really about to start spending money. Fiscal expansion 2.0 has already been set in motion. This is not the slow-cooked infrastructure and chip plan of old Biden; this time it's real money, tax cuts, deregulation, hyping AI, and giving the green light to crypto.

They are also shouting for capital to come back to America. Those who understand know that this is actually Trump's beautiful new world. But the background has shifted from tightening to loosening, and once the policy direction changes, the capital market naturally begins to stir.

The underlying logic of the market is so stark: fiscal expansion supports the foundation, and the Federal Reserve's easing adds fuel to the fire. The crypto bill directly pulls stablecoins and digital assets from the gray area into the realm of legality, which is essentially telling you that a bull market continuing is undeniable.

But on one side, there is fiscal loosening, and on the other, national debt piling up. The ten-year U.S. Treasury yield is like a hidden steel nail; when it rises, the market slips like stepping in dog poop. You can't expect Trump to always play the good guy; if he gets angry, he might just slam the table and raise taxes.

The market will instantly be doused with cold water. Although currently, the tariff threats are loud but not impactful, one still needs to be cautious during the period before August 1, as even if it's just a script, it can create some panic.

Back to the market, the current situation is quite similar to that wave in mid-November last year, with Bitcoin trading in a large range. Ethereum is making a comeback, taking up the banner of rotation. In simple terms, the market is flat, and hot money is playing catch-up and rotation.

But to be honest, if Ethereum can't continue to break through this wave, altcoins will be in danger. Because once Ethereum stops, the hot spots will really stop. If large-cap coins don't take the baton, small caps will directly crash.

If Ethereum hits 4000 and doesn't break or just spikes and then crashes down, then altcoins will have to take another beating. So in the short term, I want to change my strategy regarding Ethereum; mainly short on highs, at least for this week's structure, I won't chase highs.

Anything above 3680 is just a trap for you; it's better to wait for a pullback to go long. If Ethereum really has the ability to stand above 3880 and push up to 4200, then I’ll just shut up and admit defeat, turning bullish.

But if you ask me what to do now? I’m out of all my mid-term longs, waiting. By the way, keep an eye on the Federal Reserve and the Bank of Japan next week, especially if Japan really moves on interest rates, the impact on the dollar and crypto will be very direct.

I actually want to wait for Bitcoin to pull back from 115K to 113K; if this position can be given to me, then I’ll get back in. Every time Bitcoin consolidates, the second wave is usually a surge; I’m very familiar with this rhythm, just waiting to see if there’s an opportunity to catch it.

Anyway, at this stage, don’t fantasize about all coins flying high; this round of risk appetite is not in the small altcoins at all. Main funds are only playing large caps; if large caps don’t take the baton, rotation is just monkey business. The real main wave still has to wait for Bitcoin and Ethereum to finish their rhythm before the market can be released.

Master Looks at Trends:

Resistance Level Reference:

Second Resistance Level: 120200

First Resistance Level: 118700

Support Level Reference:

Second Support Level: 117700

First Support Level: 116800

After experiencing a rapid decline, Bitcoin showed a V-shaped recovery during the Asian session this morning and successfully held the important support at the previous low of 116.4K. Currently, the short-term outlook still maintains a rebound expectation.

If it breaks the short-term resistance level of 118.7K and effectively breaks the descending trend line, it is likely to continue to test the 120K level. Since we are currently in a consolidation phase after an increase, as long as 117.7K is not broken, it is considered a healthy pullback.

If it can maintain a high-level consolidation under the current bearish candle, it will tend to follow the green arrow 1 in the chart for a continued rebound. If it fails to break strongly, the red arrow 2 in the chart indicates a good low long opportunity.

The first resistance at 118.7K is a short-term previous high. If it successfully breaks through, it will not only boost bullish confidence but may also break the current descending trend line, increasing the probability of testing 120K. The second resistance at 120.2K is close to the psychological level of 120K; if it breaks strongly, it will bring a wave of short-term acceleration.

The current price is above the first support at 117.7K, which is also the overlapping area of the 20-day and 60-day moving averages, making it a key area for continued short-term rebounds.

If the price breaks below 117.2K, the short-term trend will lean bearish, and the area of 116.4K to 116.8K can serve as a point for gradual low buying.

7.21 Master’s Wave Strategy:

Long Entry Reference: Buy in batches in the 116000-116800 range. Target: 117700-118700

Short Entry Reference: Light short in the 120200-120500 range. Target: 118700-117700

If you truly want to learn something from a blogger, you need to keep following them, rather than making hasty conclusions after just a few market observations. This market is filled with performers; today they screenshot long positions, tomorrow they summarize short positions, making it seem like they "always catch the top and bottom," but in reality, it’s all hindsight. A truly worthy blogger will have a trading logic that is consistent, coherent, and withstands scrutiny, rather than jumping in only when the market moves. Don’t be blinded by flashy data and out-of-context screenshots; long-term observation and deep understanding are necessary to discern who is a thinker and who is a dreamer!

This article is exclusively planned and published by Master Chen (WeChat public account: Coin God Master Chen). If you want to learn more about real-time investment strategies, solutions, spot trading, short, medium, and long-term contract trading techniques, and knowledge about candlesticks, you can add Master Chen for learning and communication. A free experience group for fans has been opened, along with community live broadcasts and other quality experience projects!

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