After two days of storms, the market came to a sudden halt. Some stocks stopped moving forward just as they were calling for a bull market. Is it the end of the market or a rest during the rise? Only by understanding this logic can we understand which stage the current market is in and how to operate.
When we do analysis and judgment, we should not only look at the red and green of the K-line, nor should we simply and roughly compare the price points of the market; whether it is the power of long and short positions or the emotions of the main players, they will be truly reflected through the K-line, which cannot be faked. Let us first look at the current market sentiment from the K-line.
The lowest point of Bitcoin's daily line yesterday was around 29500, and the AI's long-short boundary was 29680; the lowest point of Ethereum's daily line yesterday was: 1862, and the AI's long-short boundary was 1859; and the lowest point of this callback is also at the long-short boundary of our community AI analysis during the day, indicating that the market is still in a bull-dominated environment;
From the perspective of trading psychology, those who were preparing to enter the market after the market has just been pulled up will further hesitate. The chips that were trapped in the early stage have been locked up for two months and now they have finally been released. They want to get out quickly. The psychological pressure is released, and it feels like they haven't breathed the air of nature for a long time. Therefore, the rest at this position is a test of human nature both for those on and off the market, and this test will eliminate a group of people.
Regarding this kind of correction, Yiming’s view is that it will not last long and will not be too deep. If it happens quickly, this adjustment will be completed tomorrow, and some varieties should be able to reach our expected targets next week.
Bitcoin started to rise from 15443 at the end of last year, and is now in its third wave of trading. You can look back and see that each wave of increase is very fast, leaving no chance for those who hesitate or have no faith. The market is in shock 80% of the time, and this is true for all financial market products. Most retail investors have an impetuous heart. Before entering the market, they say that they can hold a coin for two or three years, but after three days of not making any profit, they begin to waver. They say that they want to be friends with time, but end up being slaves to time. It is easier said than done to integrate knowledge and action, and to strive for perfection. Therefore, most of the reasons for retail investors’ losses are not because the market is bad or the strategy is bad, but because of their own reasons!
Wang Yangming once said: "People must be tempered in things before they can stand firm; only then can they be calm and steady when they are still and when they are moving." Hardships and difficulties are the best way to temper one's character.