Bitcoin Breaks $70,000: Real Breakthrough or a Trap?Bitcoin's surge to $73,000 in the last three days of October has undoubtedly sparked excitement. I had predicted this breakthrough in early October based on the monthly chart, which signifies the overall trend of the bull market
Bitcoin Breaks $70,000: Real Breakthrough or a Trap?
Bitcoin's surge to $73,000 in the last three days of October has undoubtedly sparked excitement. I had predicted this breakthrough in early October based on the monthly chart, which signifies the overall trend of the bull market. Once a trend forms, it's difficult to reverse, and we'll likely see a turnaround only when this trend ends.
Regardless of market fluctuations throughout this year, I remain confident in the ongoing bull market. This belief stems from the "Potential Dragon Strategy" I learned at Sancai. This trading system allowed me to successfully bottom-fish on March 17, 2020, and exit at the top on May 17, 2021, during the 2020 bull run. I also accurately identified the bottom of the bear market in late November 2022 when Bitcoin fell to around $16,000 and subsequently began laying the groundwork for this current bull market.
The "Potential Dragon Strategy" excels in accurately pinpointing the major bull and bear trends and determining market tops and bottoms, without a single error to date.
However, a significant portion of the community remains skeptical about the future, patiently waiting for a correction, believing history will repeat itself. Their logic is clear: the market has consistently operated this way. What they fail to realize is that this might be a strategy intentionally employed by market manipulators to cultivate a correction mindset among retail traders.
In today's era of advanced social media, platforms like WeChat, Zhihu, Weibo, and Toutiao are flooded with crypto-related information. Anyone can share their opinions, and without sufficient discernment, information overload can be overwhelming, leading to a lack of independent judgment.
One day you add someone on WeChat, the next you add someone else, asking for their opinions on the market, then follow the viewpoint expressed by the majority. This becomes your own opinion, shared on social media, triggering a herd effect.
Yet, financial markets operate against human nature. Market manipulators those who deeply understand human psychology know what retail traders crave and skillfully guide them toward their pre-set traps, ultimately leading to losses for the majority. This is the harsh reality of the financial market.
If you lack the ability to discern, blindly following the crowd will inevitably make you part of the 80% who lose money. Investing involves directly dealing with money. To achieve returns, you must acquire expertise in this field. No one's money comes from thin air; you are responsible for your finances and actions.
Trading solely based on rumors will never yield the results you desire. Take the A-share market for instance. In late September, there was a significant surge. Those who chased the rally after the National Day holiday ended up stuck. Any experienced trader would avoid chasing a rally and instead wait for a pullback before entering.
This recent Bitcoin breakthrough to $70,000 is entirely different from previous instances. From a time perspective, the market has oscillated for over six months. In terms of chart patterns, it has broken through the entire slightly downward sloping parallel channel. Moreover, we are in a bull market. Therefore, this breakthrough is genuine and marks a new beginning.
However, chasing this rally at this point is not advisable. Those who didn't allocate capital during the August 5th pullback are now buying high. Bitcoin is currently not suitable for long-term allocation. However, there are numerous undervalued potential coins worth exploring.
The above analysis represents my personal opinions and does not constitute any investment advice.
Please invest rationally and assume all risks!
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