Everyone should know the market trend in the past two days. The lawsuit between XRP and the SEC in the early morning of July 14th brought a turning point. XRP’s phased victory does not mean that other tokens that are recognized as securities by the SEC can be directly whitewashed, and they still cannot be traded in the United States. Think about it. Ripple has spent 300 million US dollars on this lawsuit. It has been sued by the SEC since December 2020, and it has been 2 years and 7 months today. Not everyone has so much money and time. At the same time, it brings substantial benefits to the currency circle. XRP has been impacting the 0.98 position, an increase of more than 100%. Other currencies have also followed suit. Bitcoin has broken through this year’s high to 31,800. However, Da Sima has been saying that unless Bitcoin stands firmly above 31,500, it may continue to impact 32,000 and 34,000. Unfortunately, Bitcoin only hit 31,800 and then quickly pulled back, and ultimately failed to stand firm.

On July 14, the market fluctuated at a high level. Sima also entered the market with a short position at 31550. He waited for a day yesterday. However, the market started to fall back around 2:00 a.m. yesterday. It fell to around 29900 before it stabilized and continued to fall. As shown in the figure below, it rose 1600 points and fell 1800 points. In two nights, the market finally returned to around 30000 for consolidation and fluctuation.

Although Da Sima did not exit at the lowest position, he still made a profit of 1,300 points. Therefore, it can be seen from this that sudden good news can affect the market, but in Da Sima's view, the impact of the news is more likely to be unsustainable. However, in the past two days, the dog dealer has played everyone. As long as they have a heavy position, the dog dealer will eat up the bulls and the bears, and the leeks will be cut one after another. The final result is a mess and corpses everywhere, and the brothers are the ones who suffer in the end.

Okay, let’s not talk about this anymore. Let’s get back to the point. Why do we say that a large amount of selling pressure is coming? Is the collapse entering the countdown?

The cryptocurrency market has suddenly received positive news. Bitcoin spot ETF will be approved in Europe first. Bitcoin is about to face a huge negative impact. The 35 billion selling pressure has officially entered the countdown. How much room for Bitcoin bulls to rise? Let's follow Da Sima to see. This year, Bitcoin bulls have gone smoothly. The price of the currency has doubled from 15,000 to 30,000. Da Sima has always been bullish in the long run, but are there any potential huge negative impacts in the short term that we investors need to pay attention to? Yes, and it is very scary. The 850,000 bitcoins stolen from Mentougou, the world's largest exchange, will begin to be compensated to investors in three months, and are expected to be repaid to retail investors in October this year.

140,000 bitcoins, with a total value of 4.3 billion US dollars, these people have been waiting for this money for nearly 10 years. Many people can get financial freedom directly after getting it. In addition, the price of the currency has indeed risen a lot, so the selling pressure at that time may exceed the market's imagination. After all, it is still a bear market, and the market liquidity is very weak. There is no fresh blood entering the market to take over. Just think about it, a million-dollar order can make a small pit in the market, and the 24-hour trading volume of Bitcoin on Binance, the world's largest exchange, is only 1 billion US dollars, so it is unimaginable that this 4.3 billion will flow into the market.

The cryptocurrency market will experience a huge correction after every small bull market, so the selling pressure in Mentougou in October is likely to cause this huge pullback. If that happens, it should be the best time to get on board before this round ends, so everyone should be prepared in advance. Of course, you can also make weekly investments to hoard coins. If you don’t consider this kind of man-made event, there is still a lot of room for growth in this year’s small bull market. However, Da Sima suggests that if you want to hoard coins, just wait for 25,000. This year, you will definitely see it, and it is also the best time. You can enter the first batch at 25,000. If it keeps falling, continue to buy in batches and wait for the bull market to come. So, be patient, the 30,000 position is definitely not the best time.

Also, the low point of each bear market, well, is when the price of the currency stops falling when 50% of the holders are losing money. Similarly, the peak of each bull market ends when 90% of the holders are in a profitable state. So according to the previous logic, the price of the currency still has some room to rise, but it is not too big, about 20% increase, that is, it will reach the top at around 35,000, and then there may be a big correction.

Let's talk about contracts. Contracts are very risky, and everyone knows this. But why do we still operate contracts? It's nothing more than wanting to get rich overnight, or to make a small investment for a big gain. Leverage can indeed increase the utilization rate of funds, but the risk will also increase. The return is proportional to the risk. This is why Da Sima has been saying that you must control your position. If the position is not well controlled, then in the event of an emergency, you dare not even increase the position to increase the average price, and the result is very passive. Therefore, when opening a position, you must control it at around 5%. In this way, even if you increase the position once, the position is only 10%. At least you will have no problem getting out of the position.

Some brothers will ask, when to add positions, how much to add, how to see this, first of all, we must be clear that the floating profit range of the market during this period is not a random increase in positions, and there is no fixed range. If the recent range of the big cake is fluctuating between 30,000-31,500, then the range of our Da Sima to add positions is generally a range of 1,000 dollars. You certainly won’t say that you are shorting at 30,000, right? If you really short at 30,000, then it can only be said that you really don’t watch the market and don’t analyze it. Normally, the most embarrassing position for everyone to get on the bus is the middle position, such as around 30,500-30,700. For example, you short at 30,500, but the market reverses, don’t panic at this time, the premise is that your position is light, there is no problem, then we can choose to add positions at 31,300-31,500. Adding positions means doubling, that is, you add as much as you open a position. In this way, your average price will be at 30,900-31,000. In this case, is there at least no problem in getting out of the market?

So adding positions is not a casual thing. First, you need to know the operating range of the market during this period. Second, you must have a good mentality. If your mentality is not good, you will frequently add positions when the price rises a little. The result is predictable. In the end, you will definitely have a heavy position, and the biggest result is a margin call. Therefore, the risk of the contract market is very high. Everyone must pay attention to the small details that may cause serious consequences to you. Survive first. What Da Sima has always said is that the longer you survive in the currency circle, the more money you will make. Don't wait for the opportunity to come and you don't have the bullet to enter the market. In the end, you can only watch others become financially free.

Recently, there is a piece of news about Matic. Finally, there is the news about Polygan Matic coin. This coin was previously blacklisted by the China Securities Regulatory Commission, causing it to fall into a slump. However, now their team has come up with a solution to destroy all Matic coins and then renew them into new POL tokens to circumvent regulation and escape. Then the token model has also changed from fixed to additional issuance, with an annual inflation rate of 1%, which is acceptable.

Now that the Horseshoe Coin has been reborn, should we invest in it? Da Sima’s suggestion is to wait and see. This coin previously emerged as a main Ethereum strategy, but now the Ethereum’s genuine expansion chain has risen, which will greatly erode the living space of the Horseshoe Chain. So unless you have great faith, it is more cost-effective to focus on new coins that have not yet exploded. So in addition to Bitcoin and Ethereum, the current Layer 2 king, ARB platform coin, emerging BGB, and even the Dogcoin embryo are all worth a try. After all, you and I are both dark horses in the bull market.

This article ends here. If you have any questions about contract operations, please leave a message in the comment area (position layout, capital allocation, position for adding positions, position for taking profit, position for stopping loss, etc.). You can consult. Da Sima knows everything. Okay, thank you for your support.