Recently, the market has experienced a significant correction. Bitcoin has fallen about 10 percentage points from its high, and other cryptocurrencies have dropped even more. That large bearish candle yesterday indeed caused many accounts to be liquidated and wiped out, making the scene quite tragic.

Looking at this round of adjustment, I think it’s necessary to emphasize again: in futures trading, position management is far more important than trading skills themselves. Too many people end up liquidated due to improper position control. In comparison, if you operate with a 100x leverage and only allocate 2% of your capital per position, even if the market moves against you and results in a loss, you are still far from liquidation. Traders who followed this principle in the past couple of days should have avoided the liquidation wave last night.

From a technical perspective, BTC broke below the 893 level last night and then hit the strong support around 877. The lowest point this morning was also near this level. As for Ethereum, the previous analysis suggested adding to positions at around 2920, and the lowest touched about 2911—those who added at this level have successfully entered the market. BNB’s addition around 875 has also been executed.

The positions added during the correction are now generally controlled at around 4%, and in extreme cases, not exceeding 6%. As long as there are no reckless operations in between, the price is still far from the liquidation level. Whether the subsequent rebound will be effective can be observed by everyone: if the rebound is strong, hold your position until near the entry price before reducing or taking profits; if the rebound is weak, you can cut half of your position at subsequent add points, which can also help lower the average entry price.

Bitcoin has consecutively formed 6 bearish candles, and Ethereum is approaching a major support zone. I personally believe that the downside space for this decline might be almost exhausted—after all, the market doesn’t only fall without rising. A rebound is likely to come next to repair the K-line. Traders who entered at the bottom can consider placing a trailing stop order. If Bitcoin rebounds, see if it can reach the 905-906 resistance zone. Only a successful breakout above this resistance can lead to further upward movement.