The road ahead is long and arduous. Bitcoin’s path to growth must overcome three “thresholds”

In the financial market, a K-line can often change the views of both long and short positions. Last night, Bitcoin surged to 7800, but was eventually pushed back by resistance near 7800. The closing price of the K-line yesterday did not break through the range of fluctuations, and the closing price of 7483 was at the upper edge of the range of fluctuations. It is very important whether the K-line can close above 7383 today. If today's closing price can be higher than yesterday's, the strong price may continue; on the contrary, if the price closes back into the fluctuation range, the fluctuation will continue.

From the current position, Bitcoin has to overcome three "thresholds" to move upward, which are also the three steps of Bitcoin's price up and down since 10500. When the price encounters these purple boxes during the upward process, there will definitely be a stage of retracement. Short-term investors can use these positions to do some short-term quick in and out operations. However, investors who focus on medium and long-term trends should pay more attention to the trading volume and K-line performance when the price crosses these resistances.

Since the rebound, every time Bitcoin surges, I will look at the long-short ratio of Bitcoin futures positions on the Bitfinex exchange. The current long-short ratio is still relatively low, which at least proves that market sentiment has not become very fanatical. The current low long-short ratio is beneficial to long holders. However, if the ratio starts to rise, especially if it suddenly rises to more than 7, you should pay attention to the risk of long holders holding coins.

Today, Friday, we take a look at IG's investor sentiment report on internal client positions as usual. The only cryptocurrency in the report that has a directional rating is Bitcoin. As its daily long position decreased by 1.14% from the previous day, and its short position decreased by 3.83% from the previous day; at the weekly level, long positions increased by 1.38% from the previous week, and short positions decreased by 33.08% from the previous week. When analyzing the positions of retail investors, due to the significant reduction in short positions, the report gave a "bearish" rating using the principle of reverse investment.

Here we need to explain again that whether it is IG's investor sentiment report, Bitfinex futures long-short ratio or CME Bitcoin futures position report, they are all market sentiment analysis for different investors. The evaluation of the role of these reports should not be based on whether the price direction is accurately predicted in one or two weeks, but requires long-term observation and statistics. In addition, sentiment reports generally do not become a signal for entry. It is only a regulator when choosing long and short strategies in different cycles. If the comprehensive report's views predict a bearish market, investors can increase short positions in the next cycle and reduce long positions. This is also a proactive risk control adjustment method.

Yesterday we introduced that the number of active addresses and new addresses of the Bitcoin network have hit a new high this year, and today the number of new addresses of ETH has also reached a three-month high. Usually, the increase in the number of new addresses is always associated with the increase in transaction prices, so this is also a support for the price of ETH.

Judging from the daily K-line, ETH is facing a similar situation to BTC. The three important resistances above need to be overcome step by step. In terms of rhythm, ETH will follow BTC closely.

Structurally, DASH performs relatively well among large-cap currencies, and its price has tested the oscillation platform formed in late February and early March for the third time. If the overall atmosphere of the crypto market continues to improve, DASH is likely to be the first to break through the resistance, with a target of $103. (CoinNess)

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