Slight rebound after two sharp falls, Bitcoin and Ethereum real-time operation suggestions and unwinding
Before you know it, it’s the weekend, and it’s no exaggeration to describe this week’s market trend as “turbulent”, but the situation of leeks in the market can only be described with one word—horrible. The mainstream digital assets experienced a round of sharp decline at the beginning of the week. When investors believed that the market would continue to adjust for a period of time, asset prices quickly rebounded to close to the original high level, forming a "V". And around this "V", investors, whether they are institutions or individuals, have become intriguing about their views on the market after experiencing peaks and troughs. But the good times didn't last long, and they were attacked by selling orders on Friday. The overall market trend returned to the original point at the beginning of the week again, and the market fell into panic again.
Bitcoin, as the leader of the mainstream currency, ushered in another sharp drop tonight, the market's wind vane is not working, and retail investors are confused. If you are bullish, you will be cut off if you are short, and if you are short, you will be cut off if you are long. No matter what you do, you will lose money if you do it back and forth. Many people are doubting themselves, whether their luck is too bad, or they are not suitable for this market at all. Self-doubt is normal, but you must sum up and reflect on what basis you have for making orders, why you are long or short, and why I am always the one who loses positions. First, you need to summarize yourself, and you can prescribe the right medicine when you know why. Second, you need to adjust your mentality. Many people panic when they see the ups and downs of the market, even if it is a profit-making order, they can't hold it because they are not confident enough. In fact, these problems are not problems, but many people are unwilling to face up to themselves and insist on competing with the market. As a result, no matter how many times you try, you still cannot leverage the market. With Mr. Tan, it can not only solve your own operating habits, but also help you manage your mentality and cultivate your ability to make orders independently, instead of trading every day like gambling. I am talking about Yu Kai, not only a professional analyst but also a psychological counselor! Accurate layout, common profit; solve problems, complement each other.
Grayscale recently released the digital asset report for the fourth quarter of 2020. According to the report, Grayscale raised more than $5.7 billion in its investment product lineup in 2020, more than four times the company's cumulative revenue of $1.2 billion from its inception in 2013 to the end of 2019. In addition, institutional interest in digital assets continues to grow. In Q4 2020, institutions accounted for 93% of inflows, reaching $3 billion, of which more than 87% flowed into Grayscale Bitcoin Trust.
In this bull market of Bitcoin, Grayscale’s institutional investors, which accounted for 93% of the total, are actually a microcosm of the changes in market participants. According to Teacher Tan, as of the end of October 2020, according to incomplete statistics, a total of 23 listed companies reserve Bitcoin. At present, as listed companies such as Grayscale and Microstrategy continue to increase their holdings of Bitcoin, the vast majority of institutional investors have become veritable Bitcoin "whales."
Tan Yukai, an analyst in the currency circle, believes that institutional investors running into the market will help optimize investor institutions in the encryption market, transform the market into large-scale transactions, and thus improve the overall risk resistance of the encryption market. An institutional investor is an economic entity with independent legal person status, and its investment behavior is regulated by various parties. Therefore, the behavior of this type of investor is relatively standardized and controllable. In the current encryption market, the proportion of institutional investors in the market is constantly increasing, which makes the market risk transfer from individual investors whose behavior is uncontrollable to institutional investors. is also of great significance. On the other hand, the improvement of the market's ability to resist risks will attract more institutional funds to enter, so that the encryption market will move towards a positive feedback loop and eventually grow into a global mainstream investment market.
Bitcoin (BTC), after testing the $40,000 mark the next day under pressure, the Asia-Europe market maintained a slight decline and adjustment, the market at the end of the European market fell negatively, and the U.S. market accelerated downward and dived directly to the $34,410 area, causing Bitcoin to fall again. In the face of a market wash, the current market situation has improved. In the early hours of this morning, the price of Bitcoin rose slowly all the way up, recovering part of the decline.
Looking at the daily line, Bitcoin closed negatively the next day, and directly gave up most of the gains from the rebound in the previous two trading days. After a wave of dips and rebounds, the price of the currency once again consolidated around the two moving averages at around 37,200 US dollars. BOLL was flat, and in the short term Focus on the resistance around $38,000. Only when the currency price regains a firm position above this position will it have the motivation to test the integer mark of $40,000, while below it will focus on the support around $36,500. The currency price has also broken this position many times. It can be recovered effectively, and the key support below is located at the support of the middle rail of BOLL at $34,400. The short-cycle KDJ technical indicators are running moderately, and the downward momentum of the attached MACD is heavy. It is expected that the pie will continue to maintain a high-level adjustment trend.
From a short-term point of view, Bitcoin shows signs of rebound after the sharp drop overnight, and the continuous positive results have led to a steady rise in the price of the currency. In the short term, focus on the $36,000-39,000 area. If Bitcoin breaks through this area, it depends on where the market goes to keep up with the trend. In terms of the general trend, Bitcoin bulls still have the advantage, and there is a tendency to rebound in the short term. Therefore, the teacher's suggestion for today's weekend market operations is mainly low and long. For cash hoarders, it has been repeatedly emphasized that every big drop is an opportunity for you to enter the market. The next day, Mr. Tan guided Bitcoin and Ethereum to buy at the current price of 35500/1150 US dollars respectively in the firm offer. So far holding is still profitable. For those who are stuck at the top, covering positions at the bottom can also lower the average price. The medium-term trend is still bullish, so you must have confidence in the market and yourself. If you are uncertain about the interpretation of technical market and news, or you have a set list, you can discuss it with Mr. Tan. Subscribe to the official account; Currency Circle Retail Alliance.
Short-term upper resistance level: 38000/38500 Short-term lower support level: 36500/36000
Ethereum (ETH), which has a certain correlation with the big pie, failed to continue the upward trend, and was under pressure at the $1,250 mark for several times. After a wave of pins went down to the $1,070 mark and then rebounded, it is currently consolidating around the $1,180 area. The trend began to enter a new round of triangle shock. Ethereum’s recent ups and downs, with large fluctuations, are now the norm. At present, the ether is stable above $1100, and the bulls still have the advantage. After all, it has not broken through many times. In terms of form, both the daily line and the short-term are maintaining the same trend as the pancake, and the short-term is also accompanied by signs of rebound. Today, the focus is on the range of 1150-1250 US dollars, and the operation can be followed up with a low-many thinking.
Short-term upper resistance level: 1220/1250 Short-term lower support level: 1170/1150
