A friend asked, why is this market difficult to trade, and how to judge if the market is hard to trade

First, the conclusion: Bitcoin has already reached a critical point of support and resistance on the weekly chart. Continuing to break upward will open an upward channel and extend the bullish structure. It’s not so easy to push higher here, but in this rebound wave, many short-sellers have been trapped, so it’s not so easy to go down either. (Once a trend is formed, it’s very hard to change; the larger the cycle, the more applicable.)

Second question: I’ll use a vivid analogy—simple markets and complex markets are like highways and rugged back roads when driving. Whether you’re entering or leaving the highway, you have to pass through toll booths.

In trading, the toll booths are what we often call “support levels” and “resistance levels.”

Taking a long position as an example:

If the key resistance level is broken, it can be understood as the car being on the highway. At this point, it’s a simple market. We only need to follow the trend and trade in one direction.

If the support level is broken, it can be understood as the car leaving the highway. At this point, the simple market ends. We need to reduce our position, unwind leverage, and quietly wait for the next toll booth on the highway.

Currently, this market is bouncing back and forth, clearly entering a trash market. If you lack trading experience, it’s easy to get repeatedly hit and suffer losses.

What we need to do is protect our capital in trash markets and strike hard in simple markets. 😇😇😇