Bitcoin had previously experienced 8 consecutive daily bullish candles, making a rapid ascent from 66,000 to around 76,000 in a single day. The price surged nearly 1,000 points in 8 days. Those who caught this bullish wave made solid profits. However, Zhong Liang was shorting throughout, with short positions opened near 72,600 and maintaining bearish views targeting 60,000 and 50,000. After reducing short positions, Zhong Liang held the remaining shorts, which resulted in being underwater for several days, with maximum drawdown exceeding 2,000 points. However, market movements aren't simply determined by uptrends leading to buying signals. Above 70,000, Zhong Liang consistently emphasized the viewpoint of not chasing rallies due to poor risk-reward ratio. When price broke through the 74,000 resistance level, the warning was repeated: one may choose not to short, but absolutely must not chase rallies, as it's easily buying at the ceiling. As expected, the market encountered resistance at highs, with various profit-taking and selling pressure causing the price to halt and reverse sharply downward. After two large bearish candles, the key focus is on the daily chart middle band support at 70,000. Breaking below this level would accelerate the downtrend!
The daily Bollinger upper band is flattening, MACD bullish momentum continues contracting, while KDJ and RSI have diverged downward after becoming overbought at highs. The strong 8-candle bullish momentum is now under pressure declining. Intraday operations should focus on shorting at highs, or chase shorts below support levels. $BTC #Gate13周年全球庆典
3.9BTC/ETH Market Analysis:
Bitcoin had previously experienced 8 consecutive daily bullish candles, making a rapid ascent from 66,000 to around 76,000 in a single day. The price surged nearly 1,000 points in 8 days. Those who caught this bullish wave made solid profits. However, Zhong Liang was shorting throughout, with short positions opened near 72,600 and maintaining bearish views targeting 60,000 and 50,000. After reducing short positions, Zhong Liang held the remaining shorts, which resulted in being underwater for several days, with maximum drawdown exceeding 2,000 points. However, market movements aren't simply determined by uptrends leading to buying signals. Above 70,000, Zhong Liang consistently emphasized the viewpoint of not chasing rallies due to poor risk-reward ratio. When price broke through the 74,000 resistance level, the warning was repeated: one may choose not to short, but absolutely must not chase rallies, as it's easily buying at the ceiling. As expected, the market encountered resistance at highs, with various profit-taking and selling pressure causing the price to halt and reverse sharply downward. After two large bearish candles, the key focus is on the daily chart middle band support at 70,000. Breaking below this level would accelerate the downtrend!
The daily Bollinger upper band is flattening, MACD bullish momentum continues contracting, while KDJ and RSI have diverged downward after becoming overbought at highs. The strong 8-candle bullish momentum is now under pressure declining. Intraday operations should focus on shorting at highs, or chase shorts below support levels. $BTC #Gate13周年全球庆典