Don’t Panic Over Bitcoin’s Sudden Drop!

Unveiling the Truth Behind the Decline: Buying Opportunities and Trading Strategies Explained in Detail

Many friends are panicking today after seeing crypto prices fall. Let’s analyze calmly the logic behind this decline and discuss how to trade in the current situation.

First, let’s talk about the fundamental reasons behind this market weakness. This isn’t only weakness in the crypto market—it affects the entire global technology market as well. The semiconductor sector has collapsed across the board, with Samsung and SK Hynix both seeing day-over-day declines exceeding 16%. Industrial panic has spread, and A-share stocks and US stocks have fallen in pre-market trading. As a risk asset, Bitcoin is naturally dragged along by the broader environment and follows the correction.

Next, let’s discuss the logic behind SK Hynix’s sharp drop. Essentially, this is an old saying: “Good news is bad news.” Before last Friday, SK Hynix conducted an initial public offering (IPO) in the US, and expectations for that IPO boosted the stock price in the short term. At that time, I also directed everyone to place buy orders (long orders) for Micron MU—entering around 900 and taking profit at 1000. After the IPO turmoil settles and the speculative value is exhausted, funds will collectively flow out, and the weak market in the short term is likely to continue. I’ve been patiently observing, waiting for a more cost-effective opportunity to buy at a lower price.

However, there’s no need to worry too much. Compared with the near-collapse of the semiconductor market, Bitcoin’s drop of only 1.5% shows that its inherent strength and resilience far exceed those of other risk assets. I repeatedly mentioned the key support levels of 62600 and 61500 yesterday, suggesting that everyone place orders based on these levels for potential rebounds. Many traders successfully placed orders at 62600 and confidently captured this rebound—profits came through patience.

Looking at Ethereum, I’ve highlighted strong resistance around 1830 more than twice. The price tested this level twice and then quickly dropped. Those who placed sell orders early likely already reaped good profits.

Regarding the most urgent question about “bottom-fishing” (hunting for the lowest price), the volatility in the US stock market right now is unpredictable. I don’t recommend aggressively chasing the lowest price; a more conservative approach is advised—wait for safer support zones before placing buy orders. Ethereum’s main target is around 1730, which aligns with the Bitcoin target at 61600. Let’s stay calm and wait for the market to provide a lower entry point.

Even if the market doesn’t offer a pullback opportunity to buy, that’s fine—we’ve already secured the core profits from this big move. Our long-term Ethereum position opened at 1530 is held through 1830 and then closed, with the core profits already locked in. The current market is in a consolidation phase, suitable only for short-term trading with small positions. Take opportunities when they appear, and don’t force it if there isn’t one.

By the way, let’s review our Micron MU trade in the US stock market. We opened a buy position around 900 and immediately advised everyone to take profit when it reached 1000. Anticipating that Hynix would weaken after the good news, I also opened a sell position at the 1000 level. I’m still holding it and waiting for the right profit-taking point.

Actually, after all this time, I’ve always believed that all gains in the market should only be obtained within the scope of each person’s own understanding. Every cycle of rise and fall has a clear logic: correlations in the macroeconomic sector, key support and resistance levels, and the patterns of the news cycle. Understanding these is the key to navigating market fluctuations calmly. Don’t let short-term market moves affect your emotions; just follow the rhythm and grab every opportunity you see!

—————

Follow this account for the latest crypto news. Subscribe to our Membership for only 10G.T to support this account. Thank you, great investors! $BTC ‌