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.

Many fans have sent private messages asking why Lin Chao's recent posting frequency is low, as I am deeply engaged in trading. I believe this pullback may be the last opportunity for a reversal in this year's bull market. After the release of the PPI data in the U.S. this week, the market reacted violently. On the evening of August 14, the market experienced a rapid decline, with ETH plummeting nearly 8% within an hour. This spike also hit many users' liquidation stop-loss points, including myself, resulting in significant losses for many users. The market fell into extreme panic in a short time. The entire market saw liquidations of $1 billion, with long positions accounting for 87.2%, and the liquidation data for ETH was twice that of BTC, indicating that retail investors and small institutions have clearly shifted their holdings from BTC to ETH. From the recent trends, it is evident that major buying has also concentrated on ETH. In the short term, the market clearly shows that the manipulators are systematically killing long positions, and after the rapid decline, the chips were quickly bought up again. Although the index has retraced, the market trend has not reversed, and from the candlestick patterns, there is no clear formation of a top structure.

From today's market index (August 16), as we guessed, it continues to dip, but it hasn't reached a suitable entry point yet. From a weekly perspective, the normal depth of a pullback should enter the blue zone, but what I actually expect is for it to enter the purple zone. Don't ask why purple, because I like purple (a joke). Generally, under the premise that the major trend hasn't changed, the deeper the pullback, the stronger the upward momentum will be. From the funding rates, we can also see that the current market still has a dominant bullish sentiment, proving that the pullback trend is not yet complete, and market sentiment has not been fully released.

From the recent chip distribution situation, the concentrated trading area for ETH is around 3731. This means that as long as the market does not fall below this range, it is not in bad shape, and the bull market will continue. From a macro narrative perspective, the news of the U.S. interest rate cuts is still very hot, and the current discussions mainly focus on whether it will be a 25 basis point or 50 basis point cut, and whether there will be one or two cuts this year. Before accurate news is released, it is highly likely that institutional capital will repeatedly hype this hot topic. As for whether the market will end after the news lands, or whether it will usher in a new and stronger narrative afterward? Regardless of how the macro narrative develops, we do not speculate, but rather prepare in advance. When the market moves into our planned scenario, we will be ready accordingly, avoiding unprepared battles.

Although I have an expected direction in mind, it does not mean I will choose to short in the short term. If I plan to observe the weekly chart, I must act according to the plan. The greatest resistance for traders actually comes from within themselves. The ability to restrain one's desires is the foundation for long-term survival in the market. Keep the passion, and let’s encourage each other.

If you are feeling lost—don’t understand the technology, can’t read the charts, don’t know when to enter, don’t know how to set stop-losses, don’t understand take-profit, randomly increase positions, get stuck while trying to catch the bottom, can’t hold onto profits, miss out on market movements… these are common issues for retail investors. Lin Chao can help you establish the correct trading mindset. A single profitable trade is worth more than a thousand words, and finding the right direction is better than repeatedly facing defeats. 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. Preserving capital and making good asset allocations are essential for steady progress in the ocean of investments. Life is like a long river flowing into the sea; what determines victory or defeat is never just the gains and losses of a single pass or the profits and losses of a moment, but rather planning before action and knowing when to stop to gain.

The global market is ever-changing, and 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 cryptocurrency market is risky; invest with caution!

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

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