In the midst of strategizing, we can win 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.
ETH remains a hub for retail investors, and the reason Lin Chao has chosen this short-term target is based on two points. First, its ETF has been listed, with major capital driving the index up, rather than retail sentiment dominating. Second, the current price of BTC is already at a high level. Lin Chao believes that BTC's current position in the crypto space is akin to a barometer, representing the overall crypto index, similar to the "Shanghai Composite Index" or "S&P 500." Retail investors rarely get involved; even a 2% fluctuation in BTC's price is unacceptable for most, whether in spot or futures trading.
Returning to our target ETH, Lin Chao informed everyone last Saturday that it was not the right time to enter the market. In the past two days, the market has moved into the blue zone as we expected (refer to the posts from August 15-16). If you are a "left-side trader," you can formulate an entry plan. However, it is still not the best entry time for me, as it remains unclear whether the pullback has completed. I will refer to the signal when the index enters the purple zone, which I have mentioned before and will not elaborate on here.
Why do we need to observe the weekly chart? Friends familiar with Lin Chao know that in trend trading, we should not bet on future market movements; we just need to follow. Currently, we can confirm the following points:
The gap between the index and the moving average still has significant space, and the dealer's chips may continue to be released.
The moving averages are still in a bullish arrangement, and the trend has not changed.
The consecutive two weeks of upward movement have not broken through the previous high, requiring a pullback to accumulate momentum.
If everyone expects ETH's performance in this bull market to break through previous highs, then this pullback must return to the top of the weekly moving average. In simple terms, the purpose of the pullback is to unify market costs and then gather strength to move upward.
Typically, novice traders will ask, since the short-term outlook is bearish, why not short? The reason they are novices usually includes the following characteristics: they cannot understand trends; they cannot discern which market information needs filtering and which is key; they cannot stop when the trend deviates from the plan; they want to catch every wave of the market and cannot control their hands. As Sun Tzu's Art of War states, "Prepare for the invincible to wait for the enemy's vulnerability." Therefore, novices must remember: control your hands, follow the trend, ensure you do not make major mistakes, and patiently wait for the market to provide opportunities.
In a bull market, not everything goes smoothly; there can also be losses that lead to ruin. No one can completely avoid losses, including myself. Please remember that making money is a gift from the market, not a testament to our own prowess. There is a lyric in "About I Love You" that says, "What I have is all luck, what I lose is all life," and this applies equally to traders.
I am preparing to lay out a replenishment plan for SOL; friends interested can also message me or leave comments to discuss together.
If you are in a state of confusion—unable to understand technology, not knowing how to read the market, unsure when to enter, unable to set stop losses, not understanding take profits, randomly increasing positions, getting stuck while trying to catch the bottom, unable to hold onto profits, missing market opportunities… 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 failing. Instead of frequent operations, it is better to strike accurately, 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 investment. 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 moment, but rather a well-thought-out plan before action, 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 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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