Master Discusses Hot Topics:

Last night, I didn't wait for Bitcoin to break its historical high, and when I woke up today, I saw it had surpassed the psychological barrier of 110k. Logically, I should be happy, right? But you and I both know that in this market, retail investors have no sense of participation. The rise is driven by large holders' K-lines, while retail investors are merely background props, even applause seems unnecessary.

The market has been moving too quickly during lunchtime these past few days, so I haven't published articles for two days. Let's review the market. Last night, Bitcoin surged to 109,845, then, as per tradition, it experienced a classic pattern of breaking through, pulling back, and a sharp drop, hitting a low of 106k, effectively washing out a wave of people.

Ethereum also cooperated well, dropping directly from 2610 to 2450, smashing back to the support level from a few days ago. What does this mean? In simple terms, although it broke a new high, the overall technical structure hasn't been clouded by emotions.

The key point is that the US dollar index has dropped below 100, and logically, Bitcoin, which has attributes of US stocks, should follow suit and decline. However, it hasn't, so we can only interpret this as the positive impact of stablecoin legislation temporarily propping up prices.

The question is, is this wave of hot money just here for a visit, or is it planning to settle down? If US Treasury bonds continue to have issues, and the liquidity in the crypto space isn't drained to save the situation, that would be quite surprising.

Currently, Bitcoin is above 111k. As for whether the next stop will be 120k or 150k, who knows? However, I underestimated the reality of institutional control. The concentration of coins in their hands is too intense. With a small amount of capital, they can pump and dump, cutting a wave of shorts and then a wave of longs.

I believe some will ask, why is Bitcoin rising? Is it digital gold or a safe-haven asset? Let's not deceive ourselves; the truth is that money has been pulled out from the dollar, US Treasury bonds, and US stocks, and just a small portion, say 1%, allocated to Bitcoin is enough to make it soar. Note, it's allocation, not FOMO chasing the rise! This distinction must be clear.

As for friends asking why Bitcoin is soaring while altcoins seem lifeless, it's because Bitcoin is being driven by new money from outside the crypto space, real big funds. Meanwhile, altcoins are the indigenous people of the crypto world, very savvy; when they can't rise anymore, they're preparing to flee.

So the current question is whether the main force behind altcoins will take advantage of Bitcoin's rise to escape or try to pull one last wave for self-rescue before retreating. At present, I believe it's more likely that they won't be able to push it up and will make a quick exit.

The most critical issue is that everyone is only seeing the optimism around Bitcoin, forgetting its deep correlation with US stocks. Once US stocks experience a significant correction, do you really think Bitcoin can play dead and not drop? Don't be foolish!

Master Looks at Trends:

Resistance Levels Reference:

Second Resistance Level: 113300

First Resistance Level: 112500

Support Levels Reference:

Second Support Level: 108500

First Support Level: 106500

Today's Suggestions:

Bitcoin is currently still oscillating at a high level after breaking its historical high. Since it has already set a new historical high, profit-taking is likely to occur at these high levels. Therefore, focus on the high-level oscillation range and whether it can stabilize within the upward channel.

Since the upper space has opened up, it is difficult to accurately predict where the top will be in the short term. Thus, levels like 113300 and 112500 can be viewed as psychological pressure points.

Currently, Bitcoin is in a new high area, and it is advisable to take a wait-and-see approach, waiting for the market to form an oscillation range at high levels before judging the pressure point position, which would be more reasonable.

If Bitcoin is to maintain its current upward structure, 108.5K is a key support level that must be held. Currently, the range of 108.5K to 111K can be viewed as a short-term oscillation range.

Compared to volatile price movements, constructing a horizontal oscillation range at high levels before moving up would be healthier. If a correction occurs, 106.5K could serve as a potential buying opportunity.

Maintain a bullish rebound mindset while closely observing the changes in the K-line patterns of smaller cycles, and flexibly adjust strategies based on market dynamics. Since we are at a phase high, aggressive chasing of highs is not recommended; instead, wait for a pullback to achieve a better entry cost.

5.22 Master’s Wave Strategy:

Long Entry Reference: 107150-108500 (enter in batches) Target: 112500-113300

Short Entry Reference: Not currently applicable

If you genuinely want to learn something from a blogger, you need to keep following them, rather than making hasty conclusions after just a few market observations. This market is filled with performers; today they screenshot long positions, tomorrow they summarize short positions, making it seem like they "always catch the top and bottom," but in reality, it's all hindsight. A truly worthy blogger will have a trading logic that is consistent, coherent, and withstands scrutiny, rather than jumping in only when the market moves. Don't be blinded by flashy data and out-of-context screenshots; long-term observation and deep understanding are necessary to discern who is a thinker and who is a dreamer!

This article is exclusively planned and published by Master Chen (WeChat public account: Coin God Master Chen). For more real-time investment strategies, solutions, spot trading, short, medium, and long-term contract trading techniques, operational skills, and K-line knowledge, you can join Master Chen for learning and communication. A free experience group for fans and community live broadcasts are now available!

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