Conduct a simple BTC disk reading exercise
The yellow line in the picture is an extension of the shoulder line of the previous bull market. After the K line touched it, it experienced a rapid decline in volume. At this time, we assume that 48900 is the top of this round of rise.
The green line is the support range since December. In December, BTC touched this support many times and rebounded, reaching a new high. It has had a support effect since the high point fell, and is currently experiencing the second support test. Given that this is close to the 40,000 integer level below, it is easy to generate a large amount of protective force to absorb the short power brought by gray scale shipments. It is difficult to fall below it without experiencing a shock.
The blue line is the upward trend line since late October. It has already fallen below and has not yet produced an effective rebound. There will be demand for a rebound in the future.
Combining these three pieces of information, assuming that the market outlook is volatile, we should operate according to the strategy of buying long near the green line and selling short near the blue line. After the shock is formed at this time, we will see a head and shoulders pattern on the $BTC graph. Therefore, after the shock is over, I personally prefer BTC to fall to around 35,000.
