Crypto Circle Academician: On 4.27, Bitcoin 79455 suddenly plunged to 77700. After the sudden drop, how should longs and shorts be opened, and how should stop-losses be set? Latest market analysis and thinking reference

Bitcoin has just gone through an unexpected, sudden plunge, smashing directly from 79400 to 77700. Was this the top, or a pullback? In fact, every sudden drop is an opportunity to test trading discipline. Some people panic and chase shorts, while others rush to bottom-fish, but in the end, both sides get beaten. Trading really doesn’t have to be so exhausting—first, get clear on the overall trend; then look for signals on smaller timeframes; set your stop-losses; control your position size; and the rest can be left to the market. What should you do in the afternoon, and how will the market move? Continue to look downward.

On the 2-hour timeframe, Bitcoin’s prior uptrend met resistance at 79455 and rolled over. The current price at 77700 has fallen below the EMA15 moving average, breaking the short-term bullish trend. The MACD indicator’s red histogram continues to shrink, and DIF and DEA are about to form a death cross. Bullish momentum has significantly weakened. Bearish strength has started to take the lead. As for the Bollinger Bands, the price has pulled back from the upper band to below the middle band. Strong resistance forms around the middle band at 77960. The lower band at 76890 is an important support. Overall, on the 2-hour timeframe, Bitcoin has entered a correction cycle. If it cannot quickly reclaim the middle band, it will most likely probe further down to support.

On the 30-minute timeframe, the candlesticks have printed consecutive bearish breakdowns. The price has broken below the lower boundary of the prior consolidation range, and it is currently below all short-term moving averages. The bearish order is clear. After the MACD death cross, the green histogram continues to expand; bearish momentum is still being released. The short-term rebound strength is weak. The Bollinger Bands are opening downward. After breaking below the lower band, there was a small rebound. The price is currently ranging around 77700. Dense moving-average resistance sits in the 78200-78400 area, so rebounds are unlikely to break through in one go. It will most likely continue to move down under pressure at the resistance zone.

North and South entry points:

Up side: Rebound to 78200-78400 to enter, stop-loss 78800, target 77200-77000; if it breaks down, look at 76800

Down side: Pull back to 76800-77000 to try longs, stop-loss 76400, target 77700-77900; if it breaks down, look at 78400

To be honest, every time there’s a sudden drop like this, many of my coin-friends get wrecked by a decentralized approach to trading. It’s really quite helpless. Things that could be avoided by simply setting stop-losses—yet many people hold positions with the mindset that “it dropped, and it will always bounce back,” and the result is that they hold it deeper and deeper. In today’s market, don’t think about bottom-fishing at the lowest point, and don’t think about calling the top at the highest point. Just make the money that fits within your understanding. Position size, stop-loss, signals—if you miss any one of these, it’s not acceptable. Don’t let emotions control your trading. #加密市场普遍上涨 $BTC