Yesterday, I analyzed the short-term trend of BTC and predicted that it would continue to rise. However, the actual result was only a brief rise, and then it broke below the first support level
Yesterday, I analyzed the short-term trend of BTC and predicted that it would continue to rise. However, the actual result was only a brief rise, and then it broke below the first support level. But it is still within the shock range.
The Trap of a Bull Market
In the past two days, the market has seen a surge in bursting orders, with a total of 3.5 billion yuan in bursts in 24 hours. The bursting of long orders accounted for as much as 2.9 billion yuan. Many people believe that it is easy to make money in a bull market, but in fact, a bull market is a graveyard for leeks.
In this whole bull market, many people missed the opportunity at the beginning, waiting for BTC to fall sharply, but in the end, they waited for it to rise all the way to more than 70,000 US dollars. Those who missed the opportunity cannot stand it anymore and enter the market one after another. This can be seen from the greed sentiment index of the market.
However, it was unexpected that they were trapped as soon as they entered the market. Only they can experience the helplessness in their hearts.
Losses in Bull Markets and Intelligence
Unlike in bear markets where most people enter the market with small funds, even if they lose money, it will not be too much. But in a bull market, it is different. Everyone believes that they can make money in a bull market and will try their best to invest all their funds, including many risky funds.
That's why people lose a lot of money in bull markets. The financial market is not a place where you can make money by being smart. On the contrary, the smarter you are, the greater the probability of losing money.
Trading Psychology and Greed
Looking back at the trend, many people will regret not buying at the bottom and selling at the top, trying to earn every cent from the market. Those who hold this idea will eventually lose money.
Lack of Professional Skills
Without professional trading skills and the support of professional institutions, how many people can make money even in a bull market?
Analysis of ETH Short-term Trend
Today, let's talk about the short-term trend of ETH.
The four-hour trend of ETH is still running in a downward channel. The last time it reached the bottom line of the downward channel, it stopped falling and rebounded.
This time, it has reached the support level again, but this time the volume is huge, indicating that the bears are relatively strong. There is no signal of a stop-loss at present.
However, there are two support levels below, one is the bottom line of the downward channel, and the other is $3,200.
Looking at the overall four-hour trend, it has now formed a volume and price divergence, and is once again approaching the support level below. This is a sharp drop, and there should be an inertial drop later. Once a stop-loss signal appears, the four-hour short-term trend of Ethereum will usher in a wave of rises.
ETH Pullback and Bull Market
Although ETH seems to be falling sharply, this is just an illusion, the purpose is to burst the contract.
As I mentioned in my previous article, March is the quarterly settlement month, and it is normal for a pullback to occur. This pullback is an early occurrence of the quarterly settlement market, but the bull market is not over. The pullback is a good time to add positions.
Some people may say that ETH has already pulled back by 20%, isn't this a big pullback? This needs to be judged by the overall trend. ETH has pulled back after a wave of rises. So far, the overall fluctuation of ETH this month has only dropped by less than one point.
As I said in my previous article, trading should follow the trend. In a bull market, don't be bearish. Just wait until the market pullback is over and a stop-loss signal appears, and then enter the market to go long.
The four-hour trend changes very quickly, and short-term profits should be taken when they are good. Don't let greed trap you. Short-term trading is about capital utilization, so you must be willing to take profits and dare to cut losses, otherwise, there is no point in doing short-term trading.
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