This week is a tough week for bitcoin bulls. The bitcoin price dropped from 37,000 USDT on Monday to the current 30,000 USDT. This price is the lowest price from January high price. The market continued to break new lows throughout the week. Thursday was even more tragic, with a drop of more than 5,000 USDT. The contract liquidation funds have exceeded 1 billion USDT. This wave of decline has made users who made a profit lost their all income
For trading any financial derivatives, most users trade with the ideology of holding a long position. However, the market is always performing contrarily. Only a minority of people who hold reverse thinking may often make lots of profit. Arrogance is the humanity for which people always think they have controlled the market and they have realized the nature of the market while we human has experienced many disasters due to this nature. There are many historical examples, such as the US subprime mortgage crisis in 2008, the stock market crash in China in 2015, and the global outbreak of the COVID-19 virus, which led to a brief collapse in global stock markets and soaring unemployment. In fact, these are the consequences of people’s arrogance.
Mr. Buffett once said:
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
These words have benefited many people’s life. It suggests taking a light short position in time when the big fall comes. In fact, making money in trading is a relatively simple thing, just remember some principles: open a position, close a position, take profit, and stop loss. The most difficult principle for most people is to set the stop loss.
The issue of setting the stop loss is the main reason that most people lose. Generally speaking, stop loss is the maximum limit of loss for traders while this value does vary for different people. Some people can tolerate the over 5% loss, then over this mark, they start to panic. Some people may lose more than 30% and they are still as calm as Buffett. This is the tip for most people with small assets to trade: when your loss exceeds 20%, please directly close the position no matter how the future market changes. Just closing the position and calm down, rework the trading plan after adjusting the minds, then start trading again.
Most signals issued every day are not absolutely accurate. In many cases, they are often stopped by big losses, but if you stick to trading, continue to optimize your trading plan, and balance your state, you can definitely make profits from trading.
Back to today’s theme, does a break below 30,000 USDT mean the end of the bull market? To be honest, no one can make a certain prediction in the short term because the market is changing every second. However, we can find some clues from some trends and indicators. It’s indeed near a very critical support level. This position is also fiercely contested between the long and short sides. But aside from the forecast, starting from real trading, you can try some long orders. Because now when you open the long position, you can set the smaller stop loss, then set the larger take profit. The sincere advice to everyone is not obsessive to predicting the market, but to make a real profit.
Regarding the market from this weekend to next week, the trends are relatively clear. First of all, the key support is about 29,000 USDT to 30,000 USDT. If it bottoms out then rebound, there is no suspense about the short-term rise to near 32,600 USDT. But once it falls below 29,000 USDT, the market should fall further.
Long single suggestion: Open the long position near 30,000 USDT, set the stop loss at 28,500 USDT, then set the take profit at 33,000 USDT.
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