#我在Gate广场过新年

Little Wealth God short positions eat big gains, why did the market drop sharply in the morning?

I just sent out the daily report, and when I checked back, Bitcoin was over 65,000—thought I read it wrong. Bitcoin had a long bearish candle early this morning, pushing the price down, now it’s at 65,200. The market is still declining. Those who follow Little Wealth God know that recently we’ve been bearish, so short positions should be profitable now. Let’s discuss two questions: why did the market drop sharply in the morning? And what is the next target level?

👉 Reasons for the morning plunge:

1. Trump’s escalation of global tariffs: Trump increased U.S. tariffs on global imports from 10% to 15%. I mentioned yesterday that this is a clear negative signal. Although the market didn’t react strongly yesterday, mainly due to low weekend liquidity, Trump’s move will have ongoing effects. It’s also worth watching whether China and Europe will retaliate.

2. Technical analysis – market consolidation nearing an end, need to choose a direction: Over the past two days, I’ve been saying that the market has reached the end of a flag-shaped consolidation and a direction needs to be chosen. Looking at the weekly chart, there are six consecutive bearish candles, which is a very weak signal, indicating a higher probability of a downward breakout.

3. Concerns over U.S. sanctions on Iran: The U.S. continues to strengthen military deployments around Iran. Another U.S. aircraft carrier is about to be deployed, and the U.S. military is frequently moving troops at multiple bases. According to The New York Times, Trump is inclined to launch the first strike on Iran in the coming days. If the initial strike is ineffective, Trump may consider larger-scale attacks on Iran.

👉 Next target level:

The first support level for Bitcoin is around the lower band of the daily Bollinger Bands at 62,900. The second support is near the weekly lower band at 61,400. If these levels are broken, it will directly test the previous low of 59,900.

What do you think about the current market? Are you shorting now? Or are you preparing to buy the dip? Feel free to leave comments and interact. Wishing everyone prosperity every day in the Year of the Horse!