$BTC The current short-term market looks similar to what happened in June this year. It was also a single large bearish candle that broke through the support level, but the price didn’t fall further; instead, it entered a consolidation phase.
I believe the current situation should be in the stage I circled. The next move doesn’t necessarily have to follow the exact script from June, but the overall direction should be the same.
There are two possible branches. One is to watch whether the first rebound afterward can break above the previous high of 76300. If it breaks, you can chase the price directly, but the risk-reward ratio won’t be great, so you should use only a small position.
The other is that it moves down once more, performs a false breakdown, and then rallies back up. This trade is well worth doing—it’s estimated to offer a 4–6x risk-reward ratio, depending on how deep the drop goes. After the breakdown is reclaimed, set the stop-loss at the lowest point of that false breakdown.
I believe the current situation should be in the stage I circled. The next move doesn’t necessarily have to follow the exact script from June, but the overall direction should be the same.
There are two possible branches. One is to watch whether the first rebound afterward can break above the previous high of 76300. If it breaks, you can chase the price directly, but the risk-reward ratio won’t be great, so you should use only a small position.
The other is that it moves down once more, performs a false breakdown, and then rallies back up. This trade is well worth doing—it’s estimated to offer a 4–6x risk-reward ratio, depending on how deep the drop goes. After the breakdown is reclaimed, set the stop-loss at the lowest point of that false breakdown.
