This pullback made a profit this time. Looking back, the most fortunate thing was that I wasn’t fooled by the previous fake breakout. The price repeatedly probed upward around 1.0030; it looked like it might continue to rally, but every spike back up quickly fell again. I judged that this area was more like draining the people chasing longs.

After holding the short, it wasn’t smooth sailing the whole way either. Several sharp rebounds tightened my nerves, especially that one wick. It almost made me doubt whether I’d read the chart wrong. Later, the price was pushed down to 0.6796, and the outcome on this trade came out to +1552.77%. The market fully validated my earlier judgment.

After going through a few liquidations, I’ve come to understand that what’s really hard isn’t calling the short. It’s whether you can stay clear-headed when the direction doesn’t go your way temporarily. It’s not that people look for shorts only after a drop—the weakening of resistance and the breakdown of follow-through were already showing at the high level. The subsequent selloff just amplified the problem.

$BTC $ETH