Wall Street Encryption Morning Report 08.20: Danger! Longer's heaven is under threat, will the short sellers' frenzied attack be effective?

Viewpoint: The need for Bitcoin to continue exploring the bottom is a perspective we have emphasized since last weekend's daily report. Currently, the Bitcoin price has begun to threaten the critical level of 112,000. Can the longer still hold? The reason we say this position is as critical as a natural barrier is not only because the vicinity of 112,000 is the starting point for last week's new high trend, and if it is broken, it indicates a complete defeat for the longer in this round of market, but also because it is the neckline of the daily "M" head and shoulders pattern. If it effectively breaks down, Bitcoin will head towards 100,000. Therefore, we expect the longer to fight hard to defend this natural barrier. Today is a day of intense competition between bulls and bears. A prudent approach is to observe the battle changes quietly, while an aggressive approach is only suitable for small positions with quick entry and exit.

Operational advice: Pay attention to the support strength near the levels of 112700 and 111800. Aggressive strategies may consider attempting to go longer with a small position to seize the rebound, and you may reduce long positions near 114200 and 115500.

Risk warning: If the short position effectively breaks through 111800, the long position can take profit or stop loss at 111300.