Market sentiment has plummeted to rock bottom, with the Fear & Greed Index at 23, indicating extreme panic. As the year draws to a close, funds are clearly seeking safe havens! On the macro level, attention has been almost entirely drawn to precious metals, with silver surging directly to over 80, showing a strong upward trend and high demand, but short-term risks are also considerable.
Meanwhile, the crypto is in an awkward position. #BTC traded sideways over the weekend, liquidity dried up, and it can only wait for market attention to return. On the 4-hour chart, the key level to watch is $90,000. If it can effectively hold above this level, the rebound momentum will be strong, especially considering the significant stimulus from the surge in gold and silver prices.
Looking at #ETH : the $2900 level has been tested five times consecutively without breaking through, demonstrating high support efficiency. Currently trading in the lower half of the consolidation zone, the lows are rising, pullbacks are on lower volume, and volatility is converging, clearly indicating it's waiting for a directional move. After Friday's close, the number of green candle significantly exceeded the number of bearish candles.
Conversely, the sharp rises of ZEC and BCH against the trend are generally indicative of highly controlled price movements. While major cryptocurrencies are falling, these surges are essentially aimed at short sellers – if you dare to short, the big players will punish you severely. Only after the short sellers have been dealt with and the major players have completed their own short positions will the market ease.
Is BCH still rising? Will ZEC come down?
Let's look at ZEC first. The bulls are very aggressive right now, not letting up until they reach a key level. The 560 area is a clear resistance level , and it's highly likely that it will only start to retrace and take profits when it hits that level. Half of the sentiment behind this surge was ignited by Hayes's shill . The last round followed the same script; once the hype died down, ZEC plummeted by half.
Short requires precise timing and entry point; it's not about shorting the moment the price turns red . I chose to short around 550 , with 100,000 USDT, approximately 20% of my total position. This type of coin requires a long-term strategy, using low leverage or even 1x to slowly accumulate positions . I'm not aiming to profit in one go; a pullback to around 510 would be very comfortable.
As for why ZEC and BCH are so strong , there's a more practical reason: the mining rig business . Mining companies need to sell mining rigs, and these two are mining cryptocurrencies, so a price surge makes it easier to sell them. Once the mining rigs are sold and profits are realized, the price naturally cools down.
So remember this: Don't chase cryptocurrencies near their all-time highs . You're chasing sentiment, while others are moving with capital. If they withdraw, you might be stuck at the top for years.
In the current market: the risks of short are always much greater than those of going long.
For example, let's set the initial price as 100. If 100 drops by 10% five times, it will only be 59; if 100 rises by 10% five times, it will reach 161. The next limit up will be +16.1, but the limit down will only be -5.9.
That's the difference. Long positions can hold on, but holding onto short positions head-on will really lead to ruin.
The opportunity will be gone in the blink of an eye, everyone gather quickly!
Don't let hesitation delay your chance to make money, and don't get burned by worthless cryptocurrencies. Join Sister Miao and let's ride this bull market together!
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