Three long wick candles probing the bottom, does the end of the government shutdown mark the beginning of a bull run?
Since Bitcoin reached its historical peak of 1260 on October 6, a series of events have followed: tariff policies, uncertainty over the Federal Reserve's interest rate cuts, and other factors leading to liquidity tightening. Whales and a number of investors have sold 400,000 Bitcoins within a month, exacerbating market panic, with a pullback of over 20% from the peak!
This suspension set a historical record of 38 days, which is also the highest since the 35-day suspension between 2018 and 2019. The government's response strategy after the last suspension was to issue government bonds to bring funds back and inject liquidity into the market. The last suspension saw an overall drop of 9%, and after market liquidity was restored, it rebounded by 15%. The same response strategy in 2020 saw Bitcoin surge from $7200 to $64,000!
From a technical perspective, after the pullback on November 4th until today, the daily level has touched the 9880 line three times without breaking it, forming a long wick candle, which is a clear bottoming signal. The 9880 position is also where most long positions are held. The decrease in short-term trading volume indicates that most retail investors are in a wait-and-see mode or panic selling, while institutions are gradually accumulating at lower levels. Overall, it forms a wide-ranging oscillation in the market. In terms of operation, if the four-hour rebound stabilizes above 1028, one can enter long positions on the right side. If the four-hour stabilizes above 1055, one can increase long positions.
Short-term trading is flexible and can change, it is expected that the U.S. government shutdown will end next week, and the market may have a explosive rise, provided that the shutdown ends smoothly. After all, the biggest stablecoin is Trump, who holds an average price of $115,000 with a total value of $2 billion. This is the market's biggest confidence! #BTC