Risk-Off Sentiment Triggers Sell-Off: Bitcoin Falls Below $100K – A Beginner's Guide

Latest news updates

• Escalation of US-Iran Tensions: According to Dongfang Caifu Wang, after the US bombed Iran’s nuclear facilities, the market is concerned that the situation in the Middle East may further escalate, leading to a surge of safe-haven funds flowing into traditional assets, and the selling pressure on digital currencies is rapidly increasing.
• Strait of Hormuz blockade risk: Several foreign media outlets point out that if Iran blocks the Strait of Hormuz, nearly 20% of global oil transportation will be disrupted, oil prices may rise significantly, and combined with the risk-averse sentiment, it has increased the downward pressure on digital currencies.

Technical Key Points

Figure:https://www.gate.com/trade/BTC_USDT

• Short-term moving average crossover: On the daily chart, the 7-day moving average has crossed below the 25-day moving average, forming a “death cross” signal, indicating a short-term bearish trend;
• Trading Volume and Open Interest: A large trading volume accompanied by a rapid price fall indicates that bears are dominant, and investors need to be wary of a potential fake upward rebound.
• Key support levels: Currently focusing on the support levels of 98,500 and 95,000 USD. If broken, there is a risk of further decline.

Take-Profit and Stop-Loss Settings Every Beginner Should Know

1. Stop loss setting

- It is recommended to set the stop-loss level 2% to 3% below the key support level to reduce the risk of passive liquidation.

1. Take Profit Strategy

- You can gradually reduce your position near resistance levels (such as $105,000, $110,000) to lock in profits;

1. Dynamic adjustment

- With changes in market sentiment and technical analysis, promptly adjust stop-loss and take-profit levels to ensure maximum profit.

Market Outlook and Operational Suggestions

• High probability of short-term fluctuations: Under the dominance of risk-averse sentiment, there is still a possibility of a second bottom in the short term. Newcomers can wait for the sentiment to be fully released before looking for an opportunity to enter.
• Medium to long-term opportunity: If the macro situation stabilizes, Bitcoin is expected to return to the range above 110,000 USD;
• Asset allocation: Beginners can control their digital currency assets within 5% to 10% of their total assets to avoid the risk of overall exposure from fluctuations in a single market.