Zongheng Freely: Non-active market fluctuations, news determines the trend.

CN
8 days ago

Everyone has their own position, value, philosophy, worldview, outlook on life, and values. Do not impose unreasonable demands on others, do not blindly demand of yourself, maintain kindness, be sincere, be tolerant of others, be strict with yourself. Gains and losses, success and failure, gathering or dispersing, are all forms of growth in life. Look at things lightly, and your mood will be better; be open-minded, and life will be beautiful.

Once again, we experienced a not-so-friendly market day. Yesterday was quite speechless, as the market showed a trend of falling first and then rising throughout the day, with the low point dropping to around 74500, followed by a rebound that peaked above 81000. The drops were severe, and the rebounds were also strong, leading to another round of significant fluctuations. In terms of operations, I was helplessly stopped out yesterday. Before publishing the article, the market was around 77000, and at that time, there were indeed no signs of a stop in the decline. It quickly continued to drop. According to the expectations, there should have been short-term support around the previous low of 76600, so we anticipated a rebound to around 78500 to set up a short position. However, the actual trend was a direct drop, and later in the evening, influenced by a false news about tariffs, the market surged strongly, breaking above 81000, which also led to our short position being stopped out. This is the volatility brought about by market movements driven by news, and such situations may occur frequently in the near future, so it’s important to remain cautious.

The reference significance that can be provided by the market is not very substantial, as a single statement can change the market trend under the influence of news. The daily line closed with a large bearish candle with a lower shadow, completing the first test of a lower position, and structurally, it is not much different from yesterday, still in a bearish phase. Currently, it seems that the daily market needs to rise above 82000 to change the short-term trend. Additionally, after yesterday's market movement, the distribution of market liquidity has changed. A major accumulation of bearish liquidity has formed around 85000, while bullish liquidity below 80000 has been largely liquidated. Currently, the main bullish liquidity has sunk below 70000. Since this is a temporary liquidity distribution after a large fluctuation, if the market undergoes small area oscillations and repairs in the next few days, the liquidity distribution will become clearer, and it may be a moment for market liquidity liquidation.

On the four-hour level, the structure has shown a bottoming rebound. The strong upward movement yesterday has made the oversold recovery from the decline nearly complete. The MACD has also begun to enter the bullish recovery zone and is showing a tendency to turn upward in the short-term indicators. However, the short-term bullish counterattack on the four-hour level is difficult to reverse in the current market environment. Although there was an oversold rebound after the significant drop yesterday, the negative impact from macro news has not been eliminated, and the tariff trade war has not eased much, which could erupt at any time. Therefore, from the perspective of the four-hour structure, a reasonable operation would be a short-term bullish and mid-term bearish trend.

In terms of operations, if the market dips again, consider participating in a short-term long position around 78200, with a stop at 77000, targeting 81000-82000. If it rises first, set up a short position around 81000, with an additional position at 82000, and a stop at 82700, without setting a target for the first entry.

For Ethereum, if it drops first, consider entering a long position around 1530, with a stop at 1460, targeting 1650 before setting up a short position. If it rises, wait to set up a short position around 1650-1700.

【The above analysis and strategies are for reference only. Please bear the risks yourself. The article is subject to review and publication, and market changes in real-time may lead to delays in information, making strategies not timely. Specific operations should follow real-time strategies. Feel free to contact and discuss the market.】

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