Master Analyst Discusses Hot Topics:
The dust has settled on the election, and market volatility has dropped significantly, once again demonstrating historical patterns. As the master analyst previously mentioned, market volatility intensified near the election as investors sought safe havens due to changing expectations. Once the results were revealed, uncertainty gave way to certainty, and volatility subsequently declined.
After Trump's victory, the market may experience a "good news is priced in" phenomenon. If policy implementation falls short of expectations, it could trigger a reversal trade. In a previous phone discussion with fan friends, the master analyst believed the market might initially surge and then pull back, but the downside would be limited, and there would still be upside potential after the adjustment.
After all, Trump will not officially take power until January next year, and it will take a month or two after taking office to truly drive policy implementation. During this period, the market is filled with positive expectations about Trump's future administration.
Remember, in October, the rally driven by Trump's expected victory was like a honeymoon period, with small investors secretly thinking, "This is the man!" The election victory was like entering a honeymoon phase, and the market was in a sweet mood. However, as time passes, if it is found that Trump talks more than he does, disappointment may arise, and market enthusiasm may gradually wane.
As someone joked, "Trump's policies are like his new hairstyle - they look very stylish, but it's unknown how long they can last."
Regarding Bitcoin and Ethereum, the master analyst mentioned in an article on October 30th that if Ethereum failed to break above 2820, this Bitcoin bull run would be the last hurrah.
Because in the master analyst's view, when Bitcoin broke through new highs, Ethereum did not synchronously break through the 2820 resistance level as it did during Bitcoin's new highs last year, which made the master analyst suspect whether Bitcoin's breakout was a false one and whether a weekly chart top divergence would form, which might be seen this month.
As for Ethereum, the master analyst also believes that many friends want to continue asking, will the altcoin season arrive? However, this morning, Ethereum has successfully broken through the 2820 resistance level, and DeFi (Decentralized Finance) has also seen a broad-based rally, with market funds seemingly flowing from Bitcoin to the Ethereum ecosystem, and BTC.D (Bitcoin dominance) has also plummeted.
The exchange rate between Ethereum and Bitcoin has begun to stabilize, and the master analyst believes this is a trend-changing development of great significance, which may end the three-year decline in the exchange rate and usher in a comprehensive bullish period for Ethereum.
Since Ethereum has already broken through 2820, the master analyst will no longer be bearish on the market in the near term. Of course, the master analyst is also aware that the possibility of a false breakout still exists, but if the weekly candle closes above the 2820 level this week, the catch-up rally in Ethereum and altcoins will continue.
Master Analyst Looks at Trends:
Bitcoin is refreshing its all-time high due to the impact of Trump's election. The overall market sentiment is positive, and unless there is significant negative news, a significant decline is not expected. The current position is suitable for moderate adjustments, so support can be observed at the retracement support lines, and a rebound view can be maintained.
Due to the continuous new highs, it is difficult to predict the new highs. In the new high area, attention should be paid to trading volume and candlestick patterns, and trailing stop-loss should be used to deal with it.
Resistance Levels:
First Resistance: 76100
Second Resistance: 77000
Support Levels:
First Support: 75200
Second Support: 74500
Today's Trading Suggestions:
Currently, the market buying pressure is relatively strong, so in the further upward range, it is necessary to break through the upper part of the ascending wedge pattern to confirm the continuation of the rebound momentum. (If it falls below the lower part of the wedge pattern and returns, attention should be paid to the possibility of a decline to 74500, and corresponding measures should be taken.)
From a super short-term perspective, the better entry point is around the second support at 74500. During the rebound, near the historical highs, it is necessary to judge whether to take profits or continue to hold based on the trading volume.
If the short-term downward trend line can be broken within the ascending wedge pattern, the short-term trend may reverse. The current price has tested the highs and pulled back, and if the support can be held, it will be seen as an entry opportunity.
11.7 Master Analyst's Swing Trade Placements:
Long Entry: 73000-73500 area, Protective Stop: 72500, Targets: 74500-75200-76100
Short Entry: Potential short entries around new highs at 76400-77000, Targets: 75200-74500
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