Analysis of Right-Side Trading Strategies After Bitcoin Surpasses $80,000

On August 25, on-chain analyst Murphy discussed right-side trading options after Bitcoin surpassed $80,000. Some traders are concerned about what would happen if they buy now and BTC drops back to $58,000. A 20% drop could lead to a further decline of 30% or 40%, which is the "fear of heights" syndrome in right-side trading. Right-side buying requires setting stop-loss points in advance, based on personal technical indicators, actual positions, and risk preferences. Murphy indicated that the commonly used STH-RP (Short-Term Holder Realized Price) serves as an important reference. Historically, breaking through the STH-RP in the latter half of a bear market is likely to result in a small trend; if it retraces without breaking, the trend continues; if it breaks, the trend ends. Currently, the STH-RP is around $70,000, and if BTC drops back to $70,000, caution is advised. A daily close below this level should trigger a stop-loss. Theoretically, the stop-loss range for right-side positions is approximately -10%, and one should not wait for a -25% drop or more to make a decision. Murphy believes that wear and tear in trading is normal and necessary, and avoiding it may lead to missing out on significant trends.

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