Long-term rating: Overweight

Short Cycle Rating:

Short Cycle Rating:

Lighten up in small-cap cryptocurrencies

Bitcoin waits for an opportunity to accumulate

Lighten up in small-cap cryptocurrencies

Another round of Bitcoin decline is coming, are you panicking today? Bitcoin fell below $50,000, pouring cold water on the frenzied market. New investors who have just learned about digital currency have taken a profound risk education lesson.

The biggest risk in the market is not a specific risk, but turning a blind eye to the risk. The world of investment is the law of the jungle. It is not smart people who make money, but smart people who don’t understand people’s money. When new investors shout zoo coins Long live, when all kinds of coins appear ignoring the fundamentals and ask others to deposit money as soon as they come out, what we see is not an opportunity, but an overzealous market that needs to be cooled.

The China Securities Journal also published an article reporting: "Frequent price rises and falls of digital currencies reflect the extreme frenzy of speculation. As for illegal and criminal activities surrounding virtual currencies, they are also constantly exposed, prompting all parties to further examine the regulatory issues of virtual currencies." We are also The briefing reminded investors many times that although we are optimistic about the market outlook of Bitcoin in the medium and long term, we need to pay attention to risks in the short term.

Regarding the medium and long-term analysis and conclusions of Bitcoin, we have described in the content of the past few briefings. Today we will focus on explaining whether Bitcoin can be bought at the bottom and how. There are detailed explanations in the 112th issue, but many investors may have forgotten or never read it, so I will review the content of this issue with everyone.

Many people fantasize about buying bottoms at the lowest point and fleeing from the top at the highest point. This is unrealistic and more likely to be linked to luck, because the time for the highest or lowest point to appear is fleeting and the trading volume is small, so For ordinary investors, the correct way to buy bottoms is to buy in batches at the bottom area, and control the cost of holding coins in the bottom area. For left transactions and right transactions.

The bottom or top turning point on the left side has not yet appeared. Investors predict in advance that the drop or rise has finished, and they start to buy in batches on the left side. The bottom or top turning point on the right side has a high probability of appearing. If there are obvious signs of turning point, the trading profits on the left side will be more profitable, but you need to take higher risks, because you don’t know whether your judgment is accurate. If you think the bottom has already appeared, but it has not, there will be a bottom-buying quilt caught in the middle of the mountain Case.

Although the trading on the right side sacrifices a little profit, the certainty is relatively guaranteed to a certain extent. Even if we stop the loss, we will have a clear point to stop the loss. Therefore, we always recommend investors to choose the right-side transaction with higher security and certainty. On the premise of sacrificing a little profit, they will not miss the whole round of trend, that is, they do not eat fish heads but only fish bodies.

Taking the bitcoin price on March 1 as an example, the average cost of buying in batches on the left is $47,000, and the average cost of buying in batches on the right is $48,000. For Bitcoin, it will rise rapidly to $64,000. Say, the $1,000 difference doesn't matter.

Bitcoin is currently in a weekly decline and a daily decline in the market, although from the perspective of a large cycle, this weekly decline is a weekly three-buy, which is a supplementary ticket before the last madness of the bull market Chance. However, a market turning point and the trend after the turning point will not end easily, and it takes time and space. Investors are requested to be patient, not to be in a low position because of panic, and not to over-operate or use leverage because of fomo emotions, and should wait patiently for the right side after the bottom appears before further operations.

In this round of decline, there will definitely be many people who are desperate for the market, and then lose their bargaining chips. When the market rises, they will not believe that the trend has started, and they will not buy. When the rise becomes unbearable, they will approach the highest point. From time to time, they will frenziedly come in and buy all kinds of garbage coins. The cycle of the cycle has never changed, because human nature has not changed since ancient times.