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Ethereum rebounded! Can we short it? How should we operate with Bitcoin next? Let's take a look.
Ethereum has rebounded! Can we short it? What should we do with Bitcoin next? Let's take a look.
First and foremost, let's talk about the trading opportunities that everyone is most concerned about. With Ethereum rebounding so much, can we short it? Where should we short? In fact, ETH is stronger compared to Bitcoin, so if you encounter resistance and want to short, it's better to choose BTC instead of ETH. If you want to go long at a support level, I would choose ETH because it is stronger. For example, at the support level of 3900, if it falls back, it can open another position.
The resistance level is that ETH can be shorted around 4300-4330, but I'm not very keen on shorting ETH because it is quite strong. I would prefer to short BTC at the resistance level, as shown in the picture. Bitcoin has some resistance around its neckline at 115,800. If it doesn't come up, that's fine, but if it does, I will definitely short and take a pullback.
Then, if he shorts again next time to test the neckline at 115,800, I probably won't short anymore, because if Bitcoin breaks the neckline, it might rise to 119,500-120,000. At that point, I will definitely short again, as there is a very strong resistance here. Currently, the price of Bitcoin is 113,500, which actually has some resistance, but the odds are smaller. I still want to place an order near the neckline at 115,800, as the success rate is higher here, but it requires patience to wait for opportunities.
Our operations are very rational, concentrating firepower on larger support and resistance levels for long and short positions. Opening positions backed by support/resistance has a high probability of success and a favorable risk-reward ratio, because if the coin price slightly breaks through resistance or falls below support, we can stop loss, making both the win rate and risk-reward ratio quite advantageous.
For example, on Monday, we let everyone exit at 4250 and short ETH, and then on Tuesday, we let everyone go long at 3900. It's all been safe and successful. Next, we will also place orders at key support and resistance levels. Regardless of whether it goes up or down, we can catch a pullback with extremely low risk, maintaining operations every day.