【The madman talks about trends】Reduce when it's high, pullback and then participate again

The madman said...

From the trend of $MELANIA, it is obvious that after listing on Binance, it fell from $12 to $3 within one day, a drop of nearly 70%. This proves one thing, whether it's $TRUMP or $MELANIA, there is no clear main capital inflow, it's purely speculation. This can indirectly illustrate that the couple came to harvest the cryptocurrency market and never considered things like spending money to protect the market. They just wanted to make a quick profit. Therefore, once the sentiment is gone in the future, these two tokens are unlikely to have any further development, unless Trump keeps hyping and advocating. The madman thinks that this is possible before unlocking, but once the unlocking is complete, it will just pass by without mentioning it.

Interestingly, the buying volume of these two tokens is relatively small during US time, but there are a large number of participants during Asia-Pacific time. This may be due to the different understanding of politics between the East and the West, caused by cultural differences.

Take a look at Trump's inauguration speech, he didn't mention cryptocurrency at all. In summary, whoever makes money for the United States is a brother, and whoever makes the United States lose money will be dealt with. It's good news for China, at least there won't be targeted attacks anymore (bullish for A-shares).

For cryptocurrencies, just wait for the subsequent signing of the bill. There are hundreds of bills, and there will always be one or two related to the currency circle. Maybe it will spark another round of rebound. So far, the favorable news has basically come to an end. Some specific things like SOL ETF, LTC ETF, are all secondary. Sell high when needed, and participate after the pullback. A few months later, it will be a good opportunity. Finally, a side note, the coins that are boosted will start at the end of a trend of rising, and the mainstream coins that have not risen should wait a bit longer. It will come soon~

After the heat of the President's coins dissipated, we can see the market returning to the AI theme, indicating that the heat in the coming period will still be focused on AI tokens, being the strong front runners with strong resistance to the decline, abandoning those that have been falling all the way, over-sold and rebounded. The strong will always be strong in any market condition.

As for Bitcoin, I think it can continue to look at the bull market cycle before surpassing gold, even a long-term bull market. However, the bull market is prone to rapid declines. If you want to accumulate more coins, you need to seize some trend-based pullback opportunities and buy at high dips and sell at low peaks. As long as you have more coins, it doesn't matter whether you buy at high or low points, after all, the current market value is still nearly 10 times away from gold. Therefore, if you are a long-term investor, you don't have to engage in short-term trading. My own short-term trading positions are also based on a 50% long-term holding position, and I only engage in short-term trading with the remaining 50% of flexible positions. I won't take action unless there is relative certainty. Even so, I have set up stop-loss positions for potential retracements to avoid being empty-handed for a long time.

Disclaimer: The article represents the personal views and opinions of the author, not the views and positions of Block. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and the author and Block will not be responsible for any direct or indirect losses incurred by investors.

"[Madman said trend] Reduce when it is high, participate after the pullback" This article was first published in "Block Times".