$OP — a strong rebound does not yet mean a new cycle
After a major drawdown, $OP may recover significantly along with the market. Even an impressive percentage gain, however, may leave the price within its previous downtrend range.
A cautious working hypothesis is that this is a recovery bounce. To discuss a new sustained trend, we need to see successive upward moves, breaks through significant resistance levels, and higher lows holding.
It is dangerous to focus only on the distance from the old price: the market is not obliged to bring the asset back to the level at which it was previously bought. It is more useful to assess $OP 's relative strength and how it moves through the nearest supply zones.
After a major drawdown, $OP may recover significantly along with the market. Even an impressive percentage gain, however, may leave the price within its previous downtrend range.
A cautious working hypothesis is that this is a recovery bounce. To discuss a new sustained trend, we need to see successive upward moves, breaks through significant resistance levels, and higher lows holding.
It is dangerous to focus only on the distance from the old price: the market is not obliged to bring the asset back to the level at which it was previously bought. It is more useful to assess $OP 's relative strength and how it moves through the nearest supply zones.