Bitcoin prices may fluctuate! The mid-term adjustment has already begun, and we need to be alert to the long-line raid

In the global financial market, Bitcoin, as a trend-setting digital currency, often affects investors' nerves with its price fluctuations. Recent market dynamics show that Bitcoin prices may face downward pressure, and signs of mid-term adjustments have already appeared. For many investors, it is particularly important to judge market trends and identify potential risks in a timely manner. This article will explore in depth the possibility of a decline in Bitcoin prices and the reasons behind it, while reminding investors to be alert to the sudden arrival of long-line.

Bitcoin price fluctuations are closely related to a variety of factors, including market demand, policies and regulations, technological progress, and the macroeconomic environment. In recent years, although Bitcoin prices have experienced several rounds of sharp increases, the ensuing adjustment period is also common. Taking 2021 as an example, after Bitcoin prices reached a historical high of nearly $65,000 in April, they immediately entered a period of adjustment, and by July the price had once fallen to around $30,000. This round of fluctuations not only brings risks to investors, but also reflects the complexity of the market.

At present, there are some signs in the market that Bitcoin's mid-term adjustment may have begun. First, from the perspective of technical analysis, the recent price trend of Bitcoin has shown a certain downward trend. The short-term moving average has broken through the long-term moving average downward, forming a "death cross" pattern. This technical signal usually indicates that market sentiment tends to be pessimistic, and the risk of further price declines increases accordingly.

Secondly, the flow of funds in the market is also worthy of attention. According to the latest data, a large amount of funds are flowing out of the Bitcoin market and into other asset classes, such as gold and stocks. This phenomenon reflects investors' uncertainty about the future market, which puts Bitcoin prices under downward pressure. Especially in the context of weak global economic recovery and continued high inflation, investors' risk appetite has significantly decreased, further exacerbating Bitcoin's price volatility.

In addition, policy changes may also have an impact on Bitcoin prices. Governments' regulatory policies on digital currencies are becoming increasingly stringent, especially in major economies such as China and the United States. The tightening of regulatory policies has suppressed market sentiment. For example, the People's Bank of China recently reiterated its crackdown on virtual currency transactions, causing panic in the market and investors selling. The existence of this policy risk puts pressure on Bitcoin prices, and the adjustment trend is more obvious in the short term.

In the face of the possible decline in Bitcoin prices, investors need to remain vigilant, especially to pay attention to the sudden attack of long Yinxian. Long Yinxian is usually a price trend that appears when market sentiment is extremely pessimistic, representing strong selling pressure. Taking the Bitcoin market in 2021 as an example, on May 19, the price once plummeted by more than 30%, forming a typical long Yinxian, which caused huge losses to many investors. Therefore, in the current market environment, investors need to pay close attention to price changes and guard against the risks of long Yinxian.

In this context, investors can adopt some strategies to cope with possible market fluctuations. First, reasonable asset allocation is an important means to reduce risks. Investors should control the investment proportion of Bitcoin within a reasonable range according to their own risk tolerance, and avoid major impacts on the overall investment portfolio due to fluctuations in a single asset. Secondly, establishing a stop-loss mechanism is an important strategy to protect investment. When the market fluctuates abnormally, timely stop-loss can effectively reduce losses and protect the safety of investors' funds.

Finally, maintaining market sensitivity and the ability to obtain information is also the key to successful investment. Investors should regularly pay attention to market dynamics, policy changes and technical analysis, and adjust investment strategies in a timely manner. Through multi-dimensional information collection and analysis, investors can better grasp market opportunities and reduce potential risks.

In short, the volatility of the Bitcoin market requires investors to remain vigilant while chasing returns. The signal of mid-term adjustment has already appeared, and the risk of price decline cannot be ignored. In the face of possible long-line surprises, investors should adopt reasonable risk management strategies to protect their investment interests. Through in-depth analysis and judgment of the market, investors can find opportunities in a complex market environment and realize effective asset appreciation. In this era of digital currency full of variables, rational investment and risk awareness will be the key to success.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The market fell across the board yesterday. The bulls in the market were obviously weak, and the bears exerted their full strength to suppress it. The market's overall leader BTC also broke down and fell. The leaders of oversold rebound ETH and EOS also fell. BNB even hit a new low again. This shows that the market's resistance is weakening. Next, I will give you a hint. If you are willing to listen, you can listen to it. If you don't want to listen, just ignore me. Assuming that the resistance is weakened, there may be a big negative line to end the consolidation and start to look for support downward. The decline and speed may be very fast, so fast that you don't have time to reduce your position. So I personally think that since the trend is clear, you should still do preventive reduction actions to ensure the safety of funds.

BTC

BTC Bitcoin fell below the integer mark of $10,000, and also fell below the lower track support level of the convergent triangle. As we mentioned earlier, the reason for the sideways fluctuations in the previous period was to give time for the funds of the oversold rebound. Now the oversold rebound has ended, and the target has led the market to find the bottom. We have always expected that the target may fall to around $7,200-7,500. Now we maintain this view, but we believe that even if there is support at this point, the strength may not be too great. Of course, this will have to wait until it reaches this point before making a judgment. The overall focus is on risk control.

ETH

The trend of ETH is actually okay. It has made a W bottom and then broke upward. It is currently in the rhythm of stepping back. The trading volume is also okay. We also mentioned earlier that the biggest risk of the target is now on BTC. Once BTC breaks down, nothing will work. It is not ruled out that the target will rush up again, but I personally still tend to believe that the oversold rebound market has basically ended and will not break through the strong pressure level of $220. Everyone should still focus on risk prevention.

EOS

EOS volume and price coordination is not ideal. It has broken through multiple moving averages in succession. The chips have begun to loosen to a certain extent. The oversold rebound has begun to waver. The morale is unstable and it is difficult to see a consistent market. It has fallen below the support of $3.7 given by us. Let's see if it can be recovered at the close. If it can't be recovered, it may bottom out again. The current MACD indicator has also crossed, and the possibility of a second bottom is relatively high. Pay attention to the risks.

The author's views are only for learning and communication, not as investment recommendations, and do not constitute an investment basis!