Institutional deleveraging triggers adjustments; the 87,300 support level becomes a key take-profit point

Bitcoin ETF continues to face selling pressure, with institutional investors proactively positioning themselves ahead of recent policy catalysts. Currently, BTC is trading at $70,860, a significant pullback from the previous high of $88,000, indicating that the market is in a critical risk adjustment phase. In light of this correction, investors need to reassess their previous take-profit strategies for high-level short positions.

ETF Continues to Sell Off, Risk Aversion Intensifies

The signal of ongoing institutional de-risking is very clear — ETF net outflows have been steadily increasing over the past week, reflecting that large-scale buyers are gradually liquidating their holdings. This behavior often occurs on the eve of major events; with the Federal Reserve’s upcoming policy meeting, market risk appetite has noticeably declined. This risk-averse move by Wall Street has also boosted confidence among short sellers.

Dual Considerations at the $87,300 Support Level, Segmental Take-Profit Strategy

On the technical side, $87,300 has become a critical support line. The decline from $88,000 to the current $70,860 has been quite substantial. For short positions established at higher levels (around $98,000), it may be prudent to consider partial profit-taking at this stage. A practical approach is to close part of the position near the $87,300 support to lock in profits and observe whether this support can hold and rebound. If the rebound reaches resistance around $91,200, it could present a second opportunity to short.

This segmented take-profit approach has two main advantages: first, realized profits are protected from subsequent volatility; second, it allows traders to retain some positions to participate in potential further declines, balancing offensive and defensive strategies.

Policy Meeting Approaching, How to Hold Mid-Term Shorts

The remaining short positions can be held until around next Wednesday’s policy meeting. If the policy implementation turns out to be less dovish than expected, it could trigger a breakdown of support levels, leading to more severe declines. Even without a “waterfall” type rapid drop, current profits are already substantial — especially for those who have locked in profits in stages, which also provides an advantage in subsequent risk management.

From Shorting on Rises to Taking Profits on Dips, Upgrading Trading Mindset

The most significant change in this market cycle is the shift in trading logic. When shorting around $98,000, the market was still engulfed in euphoria; now, it has entered a panic sell-off phase. This process reflects a transition from deploying shorts on rallies to taking profits on dips, demonstrating respect for risk and a focus on preserving gains. Not chasing extreme returns or being driven by greed is the foundation of long-term stable trading. Maintaining rationality and strict risk control is more important than the outcome of any single trade.