After this V-shaped reversal, how should we build positions for the market?

Bitcoin plunged below 64,918 and strongly rebounded to 67,777; Ethereum broke below 1936 early in the morning and then rose to 2058.

Many traders or crypto enthusiasts had already taken long positions over the weekend and successfully took profits, including Jingwen.

This sudden upward pullback caught most people, including myself, by surprise; let's analyze it:

First, from a technical perspective, the recent trend has been clearly bearish, with Bitcoin breaking below 64,918 and ETH crashing below 1936—this is the best validation.

Second, the current external environment—"geopolitical tensions"—does not support a long-term bullish outlook.

The US has repeatedly stated that Iran is considering accepting a ceasefire agreement and seeking peace; however, Iran has explicitly denied this.

The Strait of Hormuz remains difficult to fully navigate, oil prices are still high, and inflation pressures have not eased.

My view remains somewhat bearish; but whether over the weekend or this morning, I kept reminding crypto friends to "stay bearish without chasing short positions."

I suspect that after the early morning dip, many were caught in short positions at low levels; Jingwen's analysis suggests that shorting BTC at 67,500 and ETH at 2,035 is not ideal.

After the early morning dip, there were reports of whales bottom-fishing, combined with oversold technical recovery.

Countries are doing everything possible to secure oil supplies, including the so-called toll system in the Strait of Hormuz.

I think these bullish news are rather vague!