Good news lands, should Bitcoin currently enter the market to add positions, or take the opportunity to exit and cash out? The answer is actually not as optimistic as everyone imagines.

Every time the price of coins rebounds, everyone has the same question in mind: can we still chase the rally and enter now? Last night, driven by related Middle Eastern news, Bitcoin returned to 78,000, and many people's hopes reignited, thinking that the 80,000 level is within reach.

But market reality is much colder and more brutal than following the hype. At this stage, Bitcoin's trend has a very clear characteristic: the rise is mainly driven by sudden positive news. Once the hype cools down, funds will take profits and cash out, causing the price to fall back.

Simply put, positive news can cause a slight increase in the market, but to sustain a steady upward trend, the core factor still depends on the actual amount of funds entering the market. Currently, the overall scale of funds entering is not impressive, and market trading volume has not significantly increased, indicating that institutional funds remain cautious and are not willing to heavily allocate based on a single positive news.

Therefore, the short-term market is likely to continue fluctuating in a range. At the 78,000 level, the battle between the bulls and bears will be particularly intense. The bulls try to push higher on the momentum of good news, while the bears anticipate a pullback after the hype fades, looking for opportunities to short.

The most common trap for retail investors is to get excited and blindly chase after rising prices. In this kind of oscillating market, those who can truly secure profits are not the ones betting on the direction of the rise and fall, but traders who know how to control their positions. Often, when the market surges, people mistakenly think a bull market has begun, but in reality, it’s probably just a short-term illusion created to lure in traders.

Looking at the longer cycle, the overall trend still leans towards oscillating upward. Bitcoin spot ETFs continue to see inflows of funds, and the global market liquidity environment is gradually improving, providing medium- to long-term support.

However, in today’s short-term market, aiming for a strong breakout and sharp rise is quite challenging. In summary, what we are seeing now is just a phase of a rebound driven by news, not a full-blown bull market. Traders should avoid aggressive chasing of highs.