Bitcoin: Bottom Accumulation, Awaiting a Rebound, Still Bullish in the Mid-to-Long Term!After the positive news released at 8:30 PM last night, Bitcoin's price directly broke through the small parallel channel and then repeatedly pierced through, resulting in many high-leverage long and short positions being stopped out. Retail investors thought that the fluctuations were over, but that wasn't the case
Bitcoin: Bottom Accumulation, Awaiting a Rebound, Still Bullish in the Mid-to-Long Term!
After the positive news released at 8:30 PM last night, Bitcoin's price directly broke through the small parallel channel and then repeatedly pierced through, resulting in many high-leverage long and short positions being stopped out. Retail investors thought that the fluctuations were over, but that wasn't the case. After a short period of consolidation, another positive news was released at 10:00 PM, causing Bitcoin's price to rally upwards again. Many retail investors chose to chase the rally, only to be met with a nightmarish crash, with the price plummeting from 598 to 577. Even investors with low leverage couldn't withstand this sustained decline and were forced to cut their losses. Institutions seized this opportunity to complete perfect bottom accumulation, snatching up discounted chips from retail investors.
From the analysis of recent price movements, we can see that the 58,000 support level is very strong, having successfully rebounded after being broken through three times. This reflects the stubborn resistance of the bulls. In early August, Bitcoin continued to decline, and the cascading liquidation due to margin calls pushed the price down to 50,000. The market has already washed out more than 3 times the leverage. The likelihood of another sharp decline is low. It would require a substantial sell-off to achieve that. After a major drop, the rebound and consolidation in the market will lead to scattered market sentiment, easily creating a bearish atmosphere and nurturing counterparties. When enough counterparties accumulate, as long as the price rises above the 61,500-65,000 range, which is the stronger area of the consolidation range, the short positions will be stopped out and propel the market upwards.
If Bitcoin bulls lack confidence in their holdings, you can try looking at it from a different perspective: After Bitcoin halving, the current Bitcoin price is equivalent to 29,500 before halving, while the lowest point of 49,000 is equivalent to 25,000 before halving. This week's highest point of 65,000 is equivalent to 32,000 before halving. 32,000-25,000 is precisely the consolidation range that lasted for half a year from April to October last year. At the end of October last year, Bitcoin broke through 32,000 and entered an upward trend.
Although Bitcoin's short-term outlook is weak, the mid-to-long-term outlook remains optimistic. We expect a strong performance in the fourth quarter. If you haven't made money in the past six months, don't be discouraged, because this market is so volatile that even a dog passing by will get beaten up!
During the weekend's market correction, spot holders can pay attention to several potential tracks and wait for opportunities to buy the dip and add positions:
1. DeFi Track:
- AAVE: The leader in decentralized lending, with significantly increased user activity, it remains at the core of the DeFi track.
- UNI: The largest decentralized exchange. As Ethereum scaling and Layer2 solutions become more widespread, its potential is undeniable.
2. Layer2:
- MATIC: As a top-tier Layer2 solution, it provides a high-efficiency and low-cost trading environment, attracting numerous projects.
- OP: A Layer2 scaling solution for Ethereum, it has received widespread support and its scaling capabilities are rapidly improving.
3. AI Sector:
- FET: A representative of the AI field, its RSI indicator is around 70. AI + Web3 is a key area for future development.
4. Meme Coin:
- SHIB and FLOKI: Social media hype has skyrocketed, making them ideal choices for small-scale bets in a bull market.
In conclusion, despite the current market volatility, Bitcoin's future remains promising. Maintain rational judgment, invest cautiously, seize opportunities, and we believe that we can achieve substantial returns in the future market!
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