Master Talks Hot Topics:

It's Monday, and first, let's talk about the fact that U.S. stocks won't be trading tonight. Trump's inauguration speech will be at 1 AM Beijing time on January 21. The issuance of coins has really been a rollercoaster, leaving people a bit confused. But if we view Trump's coin issuance as a highly anticipated independent event, then his wife's recent moves are truly a bottomless pit for retail investors.

Actually, I was a bit tempted yesterday; my first reaction was to jump in! But after thinking it over, I still believe it's not a good idea, as there will definitely be major players shorting TRUMP at high levels.

Speaking of which, I want to emphasize that Trump is very important to the crypto space; his coin issuance is also significant for the crypto community. His wife's coin issuance is important too, but upon closer reflection, they aren't that crucial. After all these years, haven't we managed just fine without them?

A couple of days ago, Trump was aggressively capitalizing on the market, even tying it to SOL, leaving those who chased the rise feeling anxious. The entire crypto market has been thrown into chaos, with many coins showing particularly unhealthy trends. After a crazy surge, a sharp crash is inevitable. So for the crypto community, Trump's coin issuance can lead to both gains and losses.

Back to Bitcoin, the upward trend has ended prematurely, and a correction is necessary. We also need to prepare for Japan's interest rate hike and the expectations surrounding the Federal Reserve meeting. For bulls, it's time to consider positioning for a bottom buy.

Because last week, I mentioned in my article that with Trump's official inauguration at midnight, there might be a wave of increases; but starting Tuesday, everyone should start reducing their positions. With Japan's interest rate hike on Friday, there’s usually a significant drop, so the market might start reacting early on Thursday.

Another point is that expectations for Trump’s post-inauguration actions are still quite strong, and under these circumstances, Bitcoin is unlikely to easily turn bearish. If two things happen after the inauguration that could cause the market to collapse: first, if Trump goes completely crazy and aggressively pushes trade and immigration policies right away, the market will definitely panic.

Second, if he doesn't mention the crypto space at all, and Bitcoin is also ignored, people will feel something is off. Personally, I believe the policies will be more moderate; after previous media leaks and hearings, everyone expects a softer approach.

However, if he starts off particularly radical, that would exceed expectations. As for the second point, I think the likelihood of not mentioning the crypto space is low, especially since coins have already been issued; it would be unreasonable not to mention it.

Additionally, for Bitcoin, during every major upward trend, there will be two to three waves of sharp intraday drops to clear leverage. In the fourth quarter, from November to December, there were three such instances, with the fourth one leading to a direct crash. The first couple of times were relatively safe, but as time goes on, the likelihood of leverage-clearing movements increases, so everyone needs to be cautious.

Master Looks at Trends:

Resistance Levels Reference:

First Resistance Level: 103700

Second Resistance Level: 102100

Support Levels Reference:

First Support Level: 98900

Second Support Level: 97300

Today's Suggestions:

This morning, Bitcoin has fallen below 100K, so we need to be cautious of disappointment selling. Regarding the morning drop, I personally believe it is not a normal adjustment but a sharp decline. Therefore, bearish sentiment has increased, and I suggest paying attention to the support below and taking short-term positions when encountering resistance.

Additionally, in the first support range, we can look for short-term rebounds. From a risk-to-reward perspective, the long position is relatively ideal. After a sharp decline, it is advisable to set the support line short and gradually build positions; this is a good strategy for capturing technical rebounds.

During the day, we can set the first and second support levels in phases and adopt a conservative trading strategy through incremental buying. In today's trading, since a sharp decline has already occurred, we should focus on capturing technical rebounds, setting shorter stop losses, and looking for buying opportunities at short-term lows.

1.20 Master’s Wave Strategy:

Long Entry Reference: Light positions in the 98200-98900 range; if it falls back to around 97300, go long directly. Target: 100000-102100

Short Entry Reference: Not applicable for now.

This article is exclusively planned and published by Master Chen (WeChat public account: Coin God Master Chen). For more real-time investment strategies, solutions, spot trading, short, medium, and long-term contract trading techniques, operational skills, and knowledge about candlesticks, you can join Master Chen for learning and communication. A free experience group for fans and community live broadcasts are now available!

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