Interpretation of cryptocurrency market on Aug 29, 2022
The weekend market overall shock, until the early hours of this morning there was a new round of decline. The strength is not too great at the moment. As mentioned earlier, when the future policy direction has been basically clear, this short single to enter the phase of successive exit. The operation is similar to the previous rally in the process of successively closing more. In the course of the decline the short can be reduced one after another, but still retain the tail position, according to the right signal to leave the field.
Because the subsequent market has a grinding bottom and bottoming out two possibilities. If the bottom is grinding, now is basically the low level. If the bottom is explored, then there is still some downside. So part of the position reduction is to prevent grinding the bottom and retain the tail position to prevent bottoming. In addition, last week Powell's speech not only elaborated the subsequent Fed still has the possibility of significant rate hikes. There is also the view that it will not soon quit raising interest rates. This also means that the end of the bear market at the end of the year, and next year down time in place. With the cessation of interest rate hikes, the probability of opening the next round of bull market strong wave up is also reduced. The time of the bear market may be properly extended, which is the reason for the need to retain a certain short position.
Because the subsequent market has a grinding bottom and bottoming out two possibilities. If the bottom is grinding, now is basically the low level. If the bottom is explored, then there is still some downside. So part of the position reduction is to prevent grinding the bottom and retain the tail position to prevent bottoming. In addition, last week Powell's speech not only elaborated the subsequent Fed still has the possibility of significant rate hikes. There is also the view that it will not soon quit raising interest rates. This also means that the end of the bear market at the end of the year, and next year down time in place. With the cessation of interest rate hikes, the probability of opening the next round of bull market strong wave up is also reduced. The time of the bear market may be properly extended, which is the reason for the need to retain a certain short position.