Actually, the logic behind #Bitcoin’s price and data is simple!
Technically, first look for signs that the price has stopped falling, then assess the rebound. Once the rebound stabilizes, pay attention to the data, especially ETF flows and flows of major stablecoins.
The idea is that data lags behind price action on the candlestick chart, so we use the data to validate that price action—that is, to check whether the price is supported by the data.
For example, if $BTC rebounds to 80,000 tonight, we should watch to see whether major stablecoins are flowing back in. Then tomorrow, we can check whether ETF data also shows net inflows.
If the price rebound isn’t supported, it’s an invalid rebound—or what’s often called a false breakout. Be wary of insufficient momentum for a further breakout, or an immediate pullback!
Of course, this logic is for assessing trends or making medium- to long-term judgments. For many very short-term trades, data doesn’t actually offer much of a useful reference.
Technically, first look for signs that the price has stopped falling, then assess the rebound. Once the rebound stabilizes, pay attention to the data, especially ETF flows and flows of major stablecoins.
The idea is that data lags behind price action on the candlestick chart, so we use the data to validate that price action—that is, to check whether the price is supported by the data.
For example, if $BTC rebounds to 80,000 tonight, we should watch to see whether major stablecoins are flowing back in. Then tomorrow, we can check whether ETF data also shows net inflows.
If the price rebound isn’t supported, it’s an invalid rebound—or what’s often called a false breakout. Be wary of insufficient momentum for a further breakout, or an immediate pullback!
Of course, this logic is for assessing trends or making medium- to long-term judgments. For many very short-term trades, data doesn’t actually offer much of a useful reference.
