Market Volatility: Timing Trumps Direction

The cryptocurrency market is exhibiting significant volatility following hawkish remarks from Waller and the formation of a double top pattern. The price action has been sharp, with Bitcoin and gold plunging together in response to rate hike expectations.

Lao Jin's approach to this situation is to focus on timing rather than direction. He advises going with the trend and looking for dips first, then considering moving up once the price pulls back to support.

The short-term outlook suggests that Bitcoin may be overbought in the 78,000-78,500 range, making it a potential target for shorting. Similarly, Ethereum's price in the 2,435-2,455 range also presents an opportunity for shorting.

However, Lao Jin notes that there are two approaches to consider: one focused on price and the other on certainty. The former involves buying longs at support after a pullback, while the latter involves waiting for a breakout above previous highs before chasing longs.