When Bitcoin is in a sideways state, the following operation strategies can be used for reference:

I. Wait-and-see strategy

1. Advantages

• During the sideways period, the market direction is unclear. If you act rashly, you will easily suffer losses due to small fluctuations in the market. Choosing to wait and see can avoid unnecessary risks and preserve financial strength.

2. Applicable people

• For investors or novices with low risk tolerance, this is a wise choice.

II. Range trading strategy

1. Determine the range

• By analyzing the price trend of Bitcoin, determine the upper and lower boundaries of the sideways. For example, it is observed that the price of Bitcoin has been fluctuating between US$30,000 and US$35,000 in the past period of time.

2. Sell high and buy low

• When the price approaches the upper boundary of the range, you can consider selling some or all of the Bitcoin. Data shows that when approaching the upper boundary, the price often lacks the momentum to continue to rise and faces callback pressure. When the price approaches the lower boundary, you can buy Bitcoin. According to historical data statistics, successful high-sell-low-buy operations in the sideways range can obtain an average return of 5%-10% each time.

3. Risks

• This strategy requires accurate judgment of the sideways range. If the range is judged incorrectly, it may lead to large losses when the price breaks through.

III. Pay attention to market dynamics and technical indicators

1. News

• Even during the sideways period, pay close attention to news and policy dynamics related to Bitcoin. For example, if a country announces stricter regulation of Bitcoin, this may break the sideways state and cause prices to fall.

2. Technical indicators

• You can refer to technical indicators such as moving averages and relative strength indicators (RSI). When RSI is in the overbought range (such as greater than 70) and close to the upper boundary of the sideways, the price of Bitcoin may pull back; when RSI is in the oversold range (such as less than 30) and close to the lower boundary of the sideways, the price may rebound. However, technical indicators are not completely accurate, and their accuracy is generally around 60% - 70%. #比特币政策