A few days ago, we analyzed that the daily market showed a signal of stopping the decline and there would be a rebound. As expected, there was a rebound in the past few days.
However, we must be clear that rebound and rise are two different things. If the weekly line belongs to a healthy upward trend, then the rise of the daily line will continue to break new highs after the correction.
If the weekly trend begins to change, the rise in the daily line can only be explained as a rebound to lure more buyers, and the purpose of inducing more buying is to make more people believe that there will be substantial increases in the market in the future.
The weekly analysis of future directions and trends is explained every Monday. Those who are interested can read it.
In fact, this wave of rebound in the daily line is very weak. As mentioned in the article a few days ago, it will most likely fluctuate around 30,000 US dollars. The longer the fluctuation, the more people will feel that the support below is very strong and the subsequent surge will occur. Only in this way can it lure more people into the market, and then cooperate with the rise of some sub-mainstream and altcoins to make people forget the panic. This is the purpose of the main force.
The daily line is currently oscillating in a new oscillation zone. The positive line with a long upper shadow the day before yesterday was a warning signal. It hit the upper line of the oscillation zone and formed a long upper shadow, indicating that the pressure from above is also very large.
Yesterday, another negative line was closed. This negative line had a long upper shadow line and the volume also increased, which once again confirmed that there was great pressure from above. This negative line and the previous positive line formed a "pregnant line", indicating that the upward trend in the past few days has evolved into a volatile market. If the upper line of the oscillation range cannot be effectively broken through in the short term, it will fall again and try to break through the lower support.
The 4-hour chart is clearer. After an obvious rise in the 4-hour chart, it failed to break through the oscillation range twice and formed a double top. It also fell below the yellow line I drew and started a downward trend. If it cannot rebound, it will be a confirmation of the downward trend and it will continue a new round of decline after the oscillation.
After a wave of rise, the daily line showed a reversal signal. The 4-hour chart is currently in a downward trend, so everyone understands the following short-term market conditions.
Friends who have read my weekly analysis of the weekly lines should be very clear that no matter whether the daily line will rise again and how long it will fluctuate, the trend of the weekly line has changed. Therefore, no matter how the daily line jumps or how hard it holds, it is a bull trap, and the risk now is far greater than the reward.
In fact, it is the most dangerous to do short-term trading at this time, and you should also go with the trend when doing short-term trading. Because if you do short-term trading against the trend, once the trend changes completely, the trend is obviously a bear market, but you try to bet on a rebound, the bullish force will be weakened at this time, and you may be trapped at the top of the mountain if there is a sudden drop without paying attention.