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Coin Hunter: Reflections on the Stop Loss Triggered by a 10.8 Bitcoin Short Position

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财阀社区
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1 year ago
AI summarizes in 5 seconds.

       First spray, the hunter is really stupid to the extreme, being self-righteous, calculating this retail investor and that big player every day, not realizing that he is also being calculated.

       I never thought I was also a player at this table. I won't blame the big player for sweeping my stop loss; I only blame myself for not mastering the skills, being inferior to others, and willingly conceding defeat.

       First, let's review: The short position I placed at 63800 over the weekend started off perfectly. On Monday, the market opened and surged to 63900 before starting to decline all the way down. By 7 PM, the price had dropped to a low of 62600. During the phase of expanding profits, I didn't know what reason I had to take profits early during the decline. At that time, I thought the short position had successfully caught the top, and I was only troubled about where I could let my friends with empty positions find a high point to short.

       Detail analysis: From the hunter's analysis on Monday, it was clear that the long positions above 65000 were still trapped, and the short positions at 62300 were already being swept away or liquidated during the rise. In the morning, after breaking through 62300, the one-sided rise that retested 62300 left the bears with no concept of holding positions. The retest of 62300 occurred around 5 to 6 AM, which is a difficult time for domestic retail investors to enter long positions (most are asleep); only the North American market, which is the main force, could enter long positions.

       In summary, while Monday's market seemed to have fluctuations, in reality, there were no retail investors able to enter. When the market started to decline from 63900, for technical traders, 64200 was definitely a point to suppress and short. A crafty person like the hunter, who had already seen the upward trend from the false break at 59800 last week, would have shorted at 63800 during the first surge.

       This means that for the main force, as long as they maintain below 65000 (to prevent trapped positions from escaping) and above 62300 (to prevent retail investors from entering long), they can freely manipulate the market without any opponents. The only ones present are hunters like those who successfully predicted the main force's movements with high short positions.

       Now, let's talk about the specific points of failure. In the afternoon, the first wave of accelerated decline hit around 62600, which actually gave me a warning signal. According to the predictions in the hunter's article from yesterday, the market should have been weakly rebounding around 63000 in the afternoon to evening, enticing long positions to enter, followed by another wave of accelerated decline to 62300-62000, trapping a second batch of long positions, and then a second wave of accelerated decline.

       The reality was a direct drop below 63000, accelerating downwards, with a low of 62600 briefly dipping before recovering. From here, it can be seen that the market's fluctuations and the hunter's judgment had a clear discrepancy. The market did not consolidate at 63000, and long positions could not enter during the pullback. The lowest point was 62600, and the support point at 62300 also did not allow long positions to enter, quickly rebounding without giving retail investors any time to react.

       In the evening, the market accelerated upwards all the way, breaking through 64000-64200 directly. If the intention was to trap short positions (whether technical traders or retail investors), this position would definitely need to consolidate multiple times under pressure before declining. However, the market broke through directly, clearly aimed at preventing short positions from entering.

       The reason lies in the fact that hunters who predict the main force's movements short at 63800, while beginner technical traders short at 63800-64000 under pressure, and advanced technical traders short at 63300-63500 (because advanced technical traders would also think that giving 63800 is just a trap for shorts, and shorting at this position is no different from sending oneself to death). When the market breaks through 64000 without looking back and continues upwards, even if it is only a few hundred points rise, it will still force us to stop loss and exit.

       This wave of accelerated rise on Monday, to put it bluntly, was aimed at this group of hunters. I accept it; I am inferior in skills. This market cannot always let me take advantage of the big players. I need to maintain a calm mindset. Encountering a short-term stop loss in a trending market allows me to calm down and avoid the arrogance that previously arose from smooth sailing.

       Returning to today's market, the rapid reversal and decline after the surge last night was fast and without warning. It can be felt that the main force is very anxious. What are they anxious about? It reminds me of last week's urgency to liquidate the 60000 short positions. If the subsequent market is a one-sided rise, there is no need to rush to liquidate shorts; they could slowly trap the short positions, maintaining a stepwise rise, and every rise could entice shorts to add positions. Wouldn't that be wonderful?

       In summary, the purpose of doing this is simple: the main force also knows that they cannot give retail investors time to build positions anymore, nor can they give trapped high positions a chance to escape. Because macro-wise, the Federal Reserve's interest rates have not yet dropped to 3%, capital has not entered the crypto market, and the dollar, under the guidance of non-farm data, still has the impact of the Federal Reserve lowering interest rate expectations later this year, maintaining high levels throughout the year. Therefore, the downward trend has not changed. For specific content, you can refer to the hunter's previous article "Coin Hunter: 10.5 Non-Farm Night Bitcoin Tricks, Exposing Flaws to Determine Subsequent Direction."

       From today's market, there is simply no opportunity for short positions to enter. It has now reached around 62300, starting to consolidate and oscillate. Therefore, the lowest point of 61700 during the weekend's pullback becomes the acceleration signal for this round of decline, with only two possibilities.

       30% probability: wash the market once more, surge to 63800-63500 (some may try to short at 62500-62800).

       70% probability: consolidate and oscillate, then directly break below 61700 and accelerate downwards.

       Today's specific trading strategy:

       Short lightly above 62500, stop loss at the breakout of 62800, add to the position if it breaks below 61700 (conservatively, add if it breaks below 61500), looking down at 60000, and if it breaks below, look at 58000.

       Normal short positions around 63800, stop loss at the previous high, reduce positions by 30% below 62300, and add to the position if it breaks below 61700 (conservatively, add if it breaks below 61500), looking down at 60000, and if it breaks below, look at 58000.

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