Analysis: How to Trade Safely After Breaking $80,000? FOMO (Fear of Missing Out) is common among traders. It is advisable to set stop-loss orders based on risk tolerance in advance.

BlockBeats News, August 25th. On-chain analyst Murphy discussed the right-side trading decision after Bitcoin broke through $80,000. Some traders may be pondering, if they buy now, what if BTC falls back to $58,000? A 20% drop could lead to further declines of 30% or even 40%, which is a common manifestation of "height phobia" in right-side trading. Right-side entries usually require setting stop-loss orders in advance; these are determined based on the trader's personal technical indicators, actual position, and risk preference.

Murphy stated that he often uses STH-RP (Short-Term Holder Realized Price) as a key reference point. Historical data shows that in the latter half of a bear market, as long as the STH-RP can be broken through, there is likely to be a small trend. If there is a subsequent pullback that does not break the STH-RP, the trend is believed to continue; if it falls below, the trend is considered to have ended. Currently, the STH-RP is around $70,000 (dynamically changing). If BTC falls back to $70,000, cautious observation is necessary, and a daily close below that level should trigger a stop-loss. In theory, the stop-loss range for initiating a right-side position is approximately around -10%, without waiting for -25% or even more to make a decision.

Lastly, Murphy expressed that he personally believes that wear and tear in trading is normal, and one might even say necessary. To avoid wear and tear, one may miss out on a major trend.