Interpretation of cryptocurrency market on SEP 5, 2022

The market remained in a slight oscillating trend over the weekend. Friday's NFP data saw a significant decline and a rise in the unemployment rate, which was not in line with expectations, so there was a rally at the point of the data release. However, the NFP data had little impact and was generally consistent with the prior analysis.

The market oscillates at lower levels, making the trend harder to judge. Because both the sideways bottoming and another downward bottoming can be seen as the completion of the last round of bear market declines and the subsequent need to turn long-term bearish. So here is the trading from the current bear market to the next bull market—a trading period of considerable magnitude. If a plunge could occur, the bottom would be much easier to judge. But a horizontal base will make the subsequent trend complicated to analyze. Therefore, it is recommended that we follow up on the operation to reduce the position and allocate part of the funds in batches to lay out a long position in the long term.

After the rebound, finding small level highs to do short is still a more appropriate choice in the short term. The weekend market also reflects the correctness of this view. But the bottom line of risk control should not be forgotten. Here the position is relatively low. After all, support the high point of the open short is refreshed. You have to stop loss and leave the field.