7/19 BTC market analysis:
News of ETF review starting in the early morning, BTC rebounded quickly after falling? A short-term U-turn or an oversold rebound?
Hi, girls and boys, welcome to Uncle Cat Talking about Coins.
As of the time of posting, the price of BTC is 30060. After a rapid decline to 29400, it rebounded to around 30000 and oscillated. It successfully broke through the pressure and stabilized at 30000 this morning. In the short term, there is a trend of a U-turn.
From the perspective of trading volume, the market fell rapidly in the early morning, and there was no strong support around 29600 to 30000. It rebounded quickly only after reaching 29400. Overall, the trading volume of this wave of 500-point decline and rebound was not low. And the positive line that broke through the 30000 mark in the morning broke through smoothly without much resistance. From the perspective of trading volume, the market does have a tendency to turn around in the short-term trend.
On the news front, according to insiders in the early morning, the US SEC began to review the application for this round of ETFs smoothly. The market began to have a relatively fomo sentiment. In the morning, the rise of BTC ETH gradually led to the rise of altcoins. It should be noted here that the preliminary review of the SEC is a necessary process, but it is possible to raise questions and reject the application. Of course, rejection does not mean rejection, but it only increases the difficulty of the ETF application rules.
Regarding the SEC's review, I personally think that it may raise questions and increase the difficulty of the application, because the recent victory of Ripple has brought relative enthusiasm to the market, and it also makes traders think that the SEC may lose all the way. At this time, the SEC has begun to use the review mechanism, mostly to demonstrate its majesty through strict means, so I personally think that this review will most likely be difficult. So don't be too optimistic about the fomo sentiment now.
Trend Direction:
The market has a trend of fluctuating and rebounding recently. Although the rebound is caused by emotions, I am still not optimistic. After the rebound, the strict review may lead to another decline. Because a simple ETF review is not enough to stimulate the market to rise. See a wave of volatile rebound before falling.
Trading straregy:
As the market is still quite optimistic, we should pay attention to the risks when placing high short orders due to the rebound. Therefore, it is recommended to hold a light position when shorting at high levels. If the rebound is sharp or sharp, we can choose to cover the position to neutralize the cost.
Spot:
For spot trading, I suggest you adjust your positions and build positions conservatively. ARKM, which was newly listed on Bian at 8 o'clock last night, opened in a new way, with a ten-fold increase. A large number of buying orders quickly accumulated at the bottom, causing the market sentiment to be overly optimistic, and the main force shipped the goods. I personally suggest waiting patiently. This token needs to be washed at this position for a few days before you enter the market.
I am optimistic about the changes brought about by this token and find it interesting!