Too long to read: Huamen is a professional term in the currency circle. The Huamen market actually refers to the extreme market situation of skyrocketing - sideways - plummeting in the short term. Because it looks like a door is drawn from the K-line, it is called a Huamen. Generally speaking, this kind of market situation is completely controlled by the banker, so for investors, no technical analysis or indicator analysis can accurately predict in advance, but the banker can rely on this rapid rise and fall to carry out directional liquidation. , and then harvest huge profits in a short period of time.
What does Bitcoin gate mean?
Bitcoin's door-drawing market refers to the extreme market situation of skyrocketing - sideways - plummeting in the short term. From the K-line, it looks like a door is drawn. This market is completely controlled by the banker. Any technical analysis or Indicator analysis cannot accurately predict in advance. Bankers rely on this rapid rise and fall to carry out "directional liquidation", liquidating the positions of leveraged contract players on both sides of the long and short sides, thereby reaping huge profits in a short period of time. This is The banker's routine of "cutting leeks" in the bear market.
Bitcoin market analysis
In fact, this kind of situation where Bitcoin breaks down is almost non-existent in the stock market and foreign exchange market. If it is an extreme situation, the most it will be is a continuous limit drop and a V-shaped reversal. However, in the currency circle, this situation occurs again and again, which makes people feel very strange. Bitcoin’s market does have its own unique side.
Generally speaking, when a normal investment product reaches a certain price (usually what investors call a resistance level) after experiencing speculation, both the long and short sides begin to enter the cooling-off period. Bulls are afraid that if they push the price up again, short sellers may take the opportunity to sell, and then they will have no way to retreat, so they dare not pull up easily.
On the contrary, the short sellers want to go lower, but they are also afraid that the bulls will take advantage of the investors' excitement and pull another wave. If this happens, the short sellers will also be very passive. In this way, whether you are long or short, you must engage in a tug of war and test repeatedly at this so-called resistance level.
This is not the case with Bitcoin. Under this market situation, there will be tug-of-war between long and short positions, but the tug-of-war lasts for a very short time and the price is very stable. But then there will be a sharp setback, to the point where people doubt their own eyesight!
A background situation of Bitcoin's painting: There are quantitative funds that set up current price liquidation at a certain position, because they have already made money. As long as the Bitcoin price reaches a certain value, the system will automatically liquidate the position. Machine liquidation does not It's all about the brain, just execute it. As soon as it was done, no one dared to take the order, causing a series of stampedes, and other funds were also sold, so the door on the right was also drawn.
