Bitcoin recently suffered a sharp decline due to the bearish news from the MT.Gox compensation event, falling below several key support levels and continuing its downward trend, reaching a low of $58,200. Such a significant drop at the end of the month is quite rare. Bitcoin fell from $72,000 to $58,000, losing $14,000 in a single wave. Although this sharp drop seems negative, it actually helps accelerate the release of risk, laying the foundation for the market in the second half of the year.
In a bull market, the correction process is most effective when driven by bearish news. Generally speaking, bearish news during corrections helps clear out unstable market factors. The sooner the support line is broken, the faster the bull market can arrive. Recent bearish news includes:
- The MT.Gox compensation event causing market panic.
- Increased global economic uncertainty.
- Strengthened regulatory measures on cryptocurrencies by various governments.
All three points carry some uncertainty. The timing of interest rate cuts might not be delayed; the Bitcoin involved in the MT.Gox compensation may not necessarily be sold off in large quantities; and miners selling Bitcoin also have their limits. These factors do not fundamentally change the overall picture.
Therefore, I firmly believe that during the market's downward fluctuation phase, one can gradually bottom fish at three key positions, using Bitcoin as the benchmark. These positions are $70,000, $65,000, and $60,000. The principle of bottom fishing is to buy on bearish news, not to enter on bullish news. Because every bull market often starts amidst bearish conditions. It is important to operate less frequently, remain patient, and avoid frequent buying.
Currently, the increase in Bitcoin's bearish candlestick is actually a good thing. If Bitcoin's K-line continues to move sideways, all analyses become meaningless. Now, the price has fallen back to the range where institutions previously built positions. Altcoins have not followed the decline, with some showing more gains than losses, and certain strong coins starting to rise.
After Bitcoin shows a single-day 5% bearish candlestick, it is suitable to immediately bottom fish. Currently, Bitcoin has entered an oversold stage in the short term and is expected to stabilize within 2-3 days. Even if it drops further, it will be quickly pulled back. Medium-term stabilization still requires time, but short-term fluctuations increase, creating more trading opportunities. During the two-day oversold period, small declines in Bitcoin can be used to buy or go long during panic. The short-term resistance level is between $61,770 and $62,490, and the short-term support level is between $58,850 and $57,560.
The current trend indicates that Bitcoin's decline is nearing its end. The altcoins we have been watching have also started to show some improvement, notably not following Bitcoin's decline. When Bitcoin plummeted to around $58,000 yesterday, only Bitcoin hit a new low, while altcoins did not follow, indicating they are oversold, and some might have bottomed out. For favored altcoins, consider entering the market in batches.
In a bull market, the correction process is most effective when driven by bearish news. Generally speaking, bearish news during corrections helps clear out unstable market factors. The sooner the support line is broken, the faster the bull market can arrive. Recent bearish news includes:
- The MT.Gox compensation event causing market panic.
- Increased global economic uncertainty.
- Strengthened regulatory measures on cryptocurrencies by various governments.
All three points carry some uncertainty. The timing of interest rate cuts might not be delayed; the Bitcoin involved in the MT.Gox compensation may not necessarily be sold off in large quantities; and miners selling Bitcoin also have their limits. These factors do not fundamentally change the overall picture.
Therefore, I firmly believe that during the market's downward fluctuation phase, one can gradually bottom fish at three key positions, using Bitcoin as the benchmark. These positions are $70,000, $65,000, and $60,000. The principle of bottom fishing is to buy on bearish news, not to enter on bullish news. Because every bull market often starts amidst bearish conditions. It is important to operate less frequently, remain patient, and avoid frequent buying.
Currently, the increase in Bitcoin's bearish candlestick is actually a good thing. If Bitcoin's K-line continues to move sideways, all analyses become meaningless. Now, the price has fallen back to the range where institutions previously built positions. Altcoins have not followed the decline, with some showing more gains than losses, and certain strong coins starting to rise.
After Bitcoin shows a single-day 5% bearish candlestick, it is suitable to immediately bottom fish. Currently, Bitcoin has entered an oversold stage in the short term and is expected to stabilize within 2-3 days. Even if it drops further, it will be quickly pulled back. Medium-term stabilization still requires time, but short-term fluctuations increase, creating more trading opportunities. During the two-day oversold period, small declines in Bitcoin can be used to buy or go long during panic. The short-term resistance level is between $61,770 and $62,490, and the short-term support level is between $58,850 and $57,560.
The current trend indicates that Bitcoin's decline is nearing its end. The altcoins we have been watching have also started to show some improvement, notably not following Bitcoin's decline. When Bitcoin plummeted to around $58,000 yesterday, only Bitcoin hit a new low, while altcoins did not follow, indicating they are oversold, and some might have bottomed out. For favored altcoins, consider entering the market in batches.
