Gold and silver plummeted like a cliff, will BTC peak?
Late last night, precious metals finally fell to a high level after nearly 5 months of triumphant advances to new highs.
As of the close, the decline once expanded to 5.67%, and the price rebounded to 1892.42 when the article was published, but the downward trend has formed, and the high point of 2074.98 peaked in the short term.
For most investors chasing higher, this wave is enough to blow up their positions overnight, especially those standing guard above 2000 points, the rate of decline is rare in history.
In fact, this kind of situation is not uncommon in the digital currency market. A drop of more than 10 points a day is nothing to worry about. Many investors think that knowing the support and resistance can control the market, but they don’t know that support and resistance are not worth mentioning in front of the trend. Can't get up.
This cliff-like decline is caused by the long shipments regardless of cost.
Under this sentiment, the originally expected support level will lose its effect.
The picture above shows that before the price plummets, there are a lot of potential technical support, such as 2000, 1950, 1890, etc. The technical school must be waiting for these positions to step back and build positions, and even many impatient traders will directly trade in the internal market. Go to the pending order transaction.
And I also talked to you in the previous sharing, frequent pending orders + small stop loss is not a rational approach, especially in a volatile market, it is easy to be swept away, and if you click back, you will directly liquidate your position.
For BTC, the daily chart followed the decline of the external market and fell below the low of nearly 6 trading days. At present, there is some rebound strength at 11190, but this cannot change the short-term short-term dominant sentiment, and it is bearish today.
Why bears have the upper hand?
BTC is very strong under the background of bulls. The bullish sentiment has contributed to the price rise. In the past two weeks, the price has not dropped significantly. Even if it falls, it will rebound quickly. In this process, there will be a lot of people Open positions in batches, the cost of the latest batch of positions will be between 11600-11900.
And yesterday's negative K will undoubtedly lock in the investors who have these buying reasons, and if the trend is established, then the price should not return to this position, and the locked-in people should not be given a chance to unwind.
Why is there a backlash?
The rebound here comes from the buy residual orders (pending order traders) in the green box (11200 line), when the price fell enough to trigger their buy orders, the stagnation rebound.
But to a large extent, this rebound will not go too far, because there are many locked-in stocks above, and the general environment is not very good.
If the green box is broken again, it can basically be confirmed that the short trend has started, and the bull trend has temporarily peaked.
In addition, the logic of many people investing in digital currency is subjective and rogue logic. For example, BTC will replace gold, China and the United States will confront each other to buy BTC as a hedge, BTC will replace YH banknotes, and so on.
Do these factors have an impact on the BTC price? have. But it is difficult for you to quantify, and it is difficult to use a standard to help you trade, observe, and make money.
Unquantifiable trading logic has little meaning in the world of investment trading.
Finally, I would like to remind everyone again that you should not lose money when investing in any variety. There are two specific points:
1. Don’t carry orders, admit mistakes
2. Never let floating profit orders have a chance to turn into losses
