risk management

10x Research: BTC may shift from range trading to forming a top, leading to a larger decline

ChainCatcher news, 10x Research stated in its latest market analysis report that Bitcoin continues to decline, with liquidity sharply decreasing as prices fall. A large number of investors are feeling panic and taking action. The price of Bitcoin remains relatively high, but this situation may change soon, necessitating tough decisions. We can only buy low and profit when we sell high. Cryptocurrencies typically exhibit parabolic upward cycles, but the difference between retail and institutional investors lies in risk management.After Bitcoin failed to break through its highs, investors need to focus on risk management. We define Ethereum's breakout at $3,725 (June 7: Ethereum breaks key support level of $3,725: Upcoming liquidation expectations?) as an early warning signal, followed by Bitcoin's bearish signal (June 12 BTC at $67,339) and Solana (June 12 SOL at $149.16). According to our trend model, Bitcoin also entered a downtrend on June 19 (at $65,140). The trading prices for the three are: ETH at $3,423 (-8%), BTC at $63,264 (-6%), and SOL at $127.03 (-14%).Bitcoin may shift from its current range trading ($60,000 to $70,000) to a topping formation, which could lead to a larger decline. As we have observed over the past three months, range trading is a complex phase, often marked by several false breakouts. However, historically, topping formations make ordinary retail investors vulnerable, and many altcoins have experienced significant declines.
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