Has the bottom-fishing power of Wall Street arrived? Bitcoin is being aggressively purchased by ETF funds. Will things get better soon? Let's examine.
1. As the image illustrates, following last Friday's crash, the Bitcoin ETF experienced a large inflow of money for bottom-fishing, which helped the market level off at 70,000. Is this now the bottom?
2. Contrary to popular belief, Wall Street asset management firms do not operate on the same logic. They are willing to buy halfway up the mountain and are not only interested in buying at the bottom. After all, they can afford to buy at over 60,000 because Bitcoin will eventually reach 150,000 to 200,000 in a few years.
3. The average stock index rises 10% annually due to Wall Street's extremely low return rate (RRR), and a fund that makes 15% annually is regarded as having outperformed the market, a sign of a good business. Since they are accumulating at lower prices rather than bottom-fishing, it is not surprising that they began purchasing at 60,000.
4. On the other hand, Wall Street is purchasing, but the currency's value is not increasing, which is a sign of weakness in and of itself. Bitcoin will eventually break through the range between 68,000 and 71,500, which is currently its support and resistance zone.
5. As a result, approximately 64,500 and 74,000 represent the next support and resistance, respectively. At this point, we can boldly enter a long or short position with the goal of a 2,000-point pullback.
6. In my opinion, 74,000 will probably mark the end of this rebound, at which point a notable decline will start. Of course, 71,500 could also be the last point, but I'm not in a rush to short here a third time given that we've already made good profits at this level twice. At 74,000, I will safely place a short order; if it hits, I will short aggressively; if not, it will fall, and I can accept buying at the bottom.
We are competing with patience rather than speed in this protracted bear market. Opportunities frequently arise in desperation, and the true bottom never makes noise.
#etf $BTC