Bitcoin forms a doji, is it a downward relay or a reversal rebound?

Last night, the market was flooded with bargain hunting funds. Many coins released huge amounts and closed with long lower shadows. The market showed signs of stabilization. Therefore, I proposed a short-term bargain hunting strategy, and focused on BCH and EOS, which fell more severely. Short-term bargain hunting can get good returns, but we should learn to stop when we see good results.

Today, Bitcoin has formed a cross shape and is oscillating repeatedly, indicating that the bulls and bears have reached a balance, but it is only a short-term balance, and the duel will start again.

In my strategy yesterday, I mentioned the falling relay pattern, and today's trend is very similar to this trend. Looking at other coins, although the increase is good, it is not good enough compared to the big negative lines of the previous two days. The market is temporarily tempting to buy more and trying to find a buyer.

Therefore, under this trend, those who want to buy at the bottom should not linger and must make a decision in time. Don't be greedy when the market is rising and don't be afraid when the market is falling, so that you can survive in the market.

I believe that many people sold their chips at the floor price yesterday, and then rushed in to buy the bottom when they saw the rise. This is a typical leek. Therefore, at this stage, you must bet on a rebound during the decline, rather than chasing the rise during the rebound and getting trapped.

The short-term trend is definitely downward. The high point has been clearly defined. The market's funds chasing rising prices will definitely be restrained and will not push up the price to the level of last time with a smaller volume. That would undoubtedly help the "leeks" get out of the trap.

Therefore, while trading, you must learn some psychology and look at the trend charts more often to understand when to understand the movement of the main funds and when to turn the market into an ATM.

I continued to lie still, and many people asked me, knowing that the market was going to fall, why didn't I sell all my stocks and wait for a low point to buy at a low price. I can only say, you are too young.

I have 5 layers of positions when the price is over 4,000 USD, 8 layers when the price is over 6,000 USD, 3 layers when the price is over 8,000 USD, 5 layers when the price breaks through 10,000 USD, and only 3 layers when the price is over 12,000 USD. When the price drops below 10,000 USD, I will continue to increase my positions. This is my current strategy.

As for why I don't sell all of them, I think I can't predict the market, I can only control myself. Control greed, control fear. I mean, if good news comes and Bitcoin breaks through $14,000, if you are short, will you chase long? I think you will be very uncomfortable. Why should smart people bear pain?

Investing makes me happy, not painful. Therefore, the market cannot be controlled, we can only control our own behavior and do what makes us feel comfortable.

Just like chasing the rise of demon coins, I don’t care about it now, and I won’t chase the rise. I am worried every day, and I don’t know why I chase it. And doing contracts, after doing it, staring at the screen all day may not make money, and the probability of losing money is high, so why take the risk? Of course, it’s not that I won’t do it, I just do it when I have enough money.

Let’s analyze the trend from the perspective of indicators:

Bitcoin fluctuated narrowly within the Bollinger Bands, breaking below the 5-day line and the middle Bollinger Band, closing in a cross shape, with the lower Bollinger Band at around $10,500; MACD formed a dead cross pattern, but was still at a high level, but with a downward trend, and was mainly weak in the short term; KDJ fell to a low level, and RSI rebounded slightly, and was mainly volatile in the short term, and may continue to fall tomorrow.

If Bitcoin cannot stand above the 5-day line today, then there is a high possibility that it will continue to fall sharply tomorrow. Do not intervene in the short term unless there is a sharp drop and there is room for bargain hunting. Do not act rashly.

ETH's trend is a little weaker, falling to the lower Bollinger band. The Bollinger Bands may open. The DIF of MACD is also near the 0 axis, which is relatively weak. KDJ and RSI have also reached low levels, and are very weak overall.

ETH's increase is limited. If it cannot recover half of the negative line entity, the possibility of continuing to fall is very high. We need to be vigilant at all times for continued declines. Around US$250 may be the next low point.

EOS rebounded slightly, but it was weak, and the gap was large compared with the decline. In the short term, it is still mainly weak. MACD accelerated its decline below the 0 axis, the Bollinger Bands opened, and the price was still hovering at the lower track. The downward trend has not been reversed, and it needs to be continuously observed.

On the whole, the rebound is not established, and we need to continue to observe the trend. It is still better to watch more and do less. The time to buy the bottom has not come. Let's see the trend in the second half of the day and then make a decision. Follow my operation on the official account: Coin Circle Demon King

Data source for this article: QKL123