Scholar of the Currency Circle: On April 27th afternoon, Bitcoin dropped sharply from 79455 to 77700. After this sharp drop, how to open positions and set stop-loss orders? Latest market analysis and thought reference.

Bitcoin has just experienced a sudden and unexpected sharp drop, plunging from 79400 directly to 77700. Is this a peak or a correction? In fact, every sharp drop is an opportunity to test trading discipline. Some people panic and chase shorts, while others rush to catch a bottom, but in the end, both sides get hurt. Trading doesn't have to be so exhausting; first, understand the major trend, then look for signals in a smaller cycle, set proper stop-losses, manage your position size, and leave the rest to the market. How should we act in the afternoon, and how might the market move? Let's continue to look down.

On the 2-hour level, Bitcoin's previous upward trend met resistance at 79455 and retreated. The current price of 77700 has broken below the EMA15 moving average, and the short-term bullish trend has been disrupted. The MACD indicator's red bars continue to shorten, and the DIF and DEA are about to form a death cross, significantly weakening bullish momentum while bearish strength begins to take over. On the Bollinger Bands, the price has dropped from the upper band to below the middle band, with strong resistance forming around the middle band at 77960, and the lower band at 76890 serving as important support. Overall, the 2-hour level has entered an adjustment period, and if it cannot quickly reclaim the middle band, it is highly likely to further test the support levels.

On the 30-minute level, the K-line has shown consecutive bearish candles breaking below, with the price dropping below the lower edge of the previous consolidation range. It is currently below all short-term moving averages, clearly indicating a bearish arrangement. After the MACD indicator's death cross, the green bars continue to expand, with bearish momentum still being released, and the strength of any short-term rebound is weak. The Bollinger Bands are opening downward, and after breaking below the lower band, there was a slight rebound. It is currently fluctuating around 77700, with dense moving average pressure in the 78200-78400 range above, making it difficult for the rebound to break through in one go – it is highly likely to be pressured at these levels and continue to decline.

Entry points for South and North:

Above: Enter at the rebound to 78200-78400, with a stop loss at 78800, aiming for 77200-77000, and breaking below at 76800.

Below: Pullback to 76800-77000 to try longs, with a stop loss at 76400, aiming for 77700-77900, and breaking above at 78400.

To be honest, every time there is such a sharp drop, many coin friends who come to me feel quite helpless about decentralization. Issues that could clearly be avoided with proper stop losses are often worsened by many holding on with the mindset that it will eventually recover, resulting in a deeper and deeper loss. In the current market, don’t think about catching a bottom at the lowest point, and don’t think about escaping a peak at the highest point; it is enough to earn money within your understanding. Position size, stop loss, and signals – none of these can be ignored. Don’t let emotions dictate your trading.

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