July 24 BTC/ETH market-maker strategy by Mi Shen

Last night, US stocks were really smashed together: the Dow fell 0.97%, the Nasdaq fell 2.15%, and the S&P 500 fell 1.21%. After the earnings reports from Google and Tesla, both dropped sharply (Tesla down more than 14%, Google down nearly 7%). In one night, the combined market value of the two firms evaporated by about $300 billion. The core reason is that free cash flow turned negative at the same time, while capital expenditures surged. But storage chip stocks rose against the tide—simple logic: what’s falling is the “money-burning people,” and what’s rising is the “shovel sellers.”

At the same time, the situation in the Middle East escalated, pushing oil prices higher; Brent briefly broke above $100. The US’s new tariffs of 10%-12.5% imposed on 60 countries also took effect at 12:00 AM on the 24th. On the crypto side, this storm was relatively calm: Bitcoin held around $65k, not collapsing alongside tech stocks. This suggests that, in the short term, funds haven’t linked crypto assets with the “AI capital expenditure concerns” line and sold them together. With several lines intertwined and sentiment tense, the key now is to see how long this “anti-drawdown” can hold.

BTC: If you’ve been sticking to Mi Shen’s three-zone theory recently, it should be pretty easy to execute. You probably haven’t used the box range theory yet, so I’ll mention it again: “Treat the box as a whole; the box’s middle axis is the watershed for judging strength and weakness; the upper and lower rails are defense levels.” Concretely, the adjustment in the night session happens right at the stop-iteration of the middle axis of the second zone. In this current round, after touching the upper rail of the third zone, a correction appeared. Then, after the third zone’s middle axis consolidated, it couldn’t recover the upper rail, and price adjusted downward (see chart annotations). Currently, the middle axis of the second zone is stopping the decline. If there’s upward repair, the main resistance is around 66,000 near the middle axis of the third zone. So you can consider adding shorts near the lower rail and the middle axis of the third zone, using the middle axis as the defense. If adding more shorts, use 64,600 near the middle axis of the second zone as the defense; if that breaks, look for the next signal to try.

ETH: Yesterday, we added a short at 1,932 and got a good amount of value. In the early session, after approaching the support around 1,855, price saw a stop-iteration rebound. For today’s intraday, watch the resistance area 1,890-1,910. If 1,910 is reclaimed, the short should be exited. If you want to add shorts, defend at 1,910 as well; you can add tickets below this level. For adding shorts, the signal here isn’t clear enough yet; below there are several support “box ranges.” You can pay attention to the signals and apply the box theory. (See the chart.) #Gate事件合约首发狂欢 $BTC ‌