Master Chen's Hot Topic Discussion:
Last night, before BTC broke its historical high, upon waking up today, I saw it had surpassed the psychological barrier of 11w. Logically, one should be happy, right? But we both know that in the current market, retail investors have no sense of participation. The K-lines are rising for whales, and retail investors are merely background props, with even applauding seeming superfluous.
The market has been moving so quickly these past few days that I haven't published an article for two days, so let me review the situation first. After BTC rose to 109,845 last night, following tradition, it underwent a typical breakdown, retracement, and sharp drop, falling to a low of 106k, effectively washing out many traders.
Ethereum also cooperated, dropping directly from 2610 to 2450, falling back to previous support levels. In plain terms, despite breaking new highs, the overall technical structure hasn't been emotionally overwhelmed.
The key is that the US dollar index has fallen below 100. Logically, a US stock-like asset like BTC should have dropped. However, it didn't, so it can only be understood that the stablecoin bill and other positive news have temporarily supported the price.
The question is, are these hot funds just touring or settling in? If US debt continues to have issues, it would be a miracle if the crypto market's small pool of liquidity isn't drained to rescue the situation.
Currently, BTC is above 111k. As for whether it will reach 120k or 150k, who knows? However, Master Chen underestimated the degree of institutional control - crypto is concentrated in their hands too tightly. They can pump or dump with a small amount of capital, cutting both long and short positions.
Master Chen believes some will ask why BTC is rising. Is it digital gold or a safe-haven asset? Don't fool yourself. The truth is that money is flowing out from US dollars, US debt, and US stocks. If just 1% is allocated to BTC, it's enough to make it fly. Note: allocation, not FOMO chasing! This must be clear.
As for why BTC is rising rapidly while altcoins are like dead dogs? Because BTC is being pushed by external new money, genuine large-scale capital. The altcoin crowd are crypto natives, clever enough to prepare to run when things can't rise.
So now the question is whether altcoin main forces will run while BTC is high, or pull one last self-rescue before leaving. Currently, Master Chen thinks it's more likely they won't be able to pull it up and will simply flee.
The most critical point is that everyone only sees BTC's optimism, forgetting its deep connection with US stocks. If US stocks have a major pullback, do you really think BTC can play dead and not fall? Don't be naive!
Master Chen's Trend Analysis:
Resistance Levels Reference:
Second Resistance: 113300
First Resistance: 112500
Support Levels Reference:
Second Support: 108500
First Support: 106500
Today's Recommendation:
After breaking the historical new high, Bitcoin is currently oscillating at high levels. Having refreshed the historical new high, profit-taking is likely at these levels. Therefore, focus on the high-level oscillation range and whether it can stabilize within the upward channel.
Since the upward space has opened, it's difficult to accurately predict the top in the short term. Therefore, consider 113300 and 112500 as psychological pressure levels.
Currently in a new high area, it's recommended to mainly observe and wait for the market to form a high-level oscillation range before judging resistance levels.
To maintain the current upward structure, 108.5K is a critical support level. Currently, view 108.5K~111K as a short-term oscillation range.
Compared to violent ups and downs, constructing a horizontal oscillation range before moving up would be healthier. If a correction occurs, 106.5K could be a potential buying opportunity.
Currently maintain a long rebound perspective, while closely observing short-cycle top K-line pattern changes and flexibly adjusting strategies based on market dynamics. Since already at a stage high point, aggressive chasing is not recommended; instead, wait for a pullback to obtain a better entry cost.
5.22 Master Chen's Wave Trading Preparation:
Long Entry Reference: 107150-108500 zone, batch entry, Target: 112500-113300
Short Entry Reference: Not recommended currently
If you truly want to learn from a blogger, you must follow consistently, not make conclusions after just a few market views. This market is full of performative players who screenshot long positions today and summarize short positions tomorrow, appearing to "always catch tops and bottoms" but actually just providing hindsight. Truly worth-following bloggers will have trading logic that is consistent, self-consistent, and stands up to scrutiny - not jumping on the bandwagon when the market moves. Don't be misled by exaggerated data and out-of-context screenshots. Long-term observation and deep understanding are key to distinguishing thinkers from dream-makers!
This content is exclusively planned and released by Master Chen (Public Account: Coin God Master Chen). For more real-time investment strategies, exit strategies, spot, short/medium/long-term contract trading methods, operational techniques, and K-line knowledge, you can join Master Chen's learning exchange group, which now offers free fan experience groups and community live streaming!
Warm Reminder: Only the column public account (above image) is written by Master Chen. Advertisements at the end of the article and in the comments are unrelated to the author! Please be cautious in distinguishing authenticity. Thank you for reading.
