7.4 Is Bitcoin really going to break and start a downward trend?

After the closing of the morning, the price of Bitcoin suddenly plummeted, breaking the previous low point all of a sudden, and the lowest point has fallen below 58,000.

In the analysis of the previous two articles, we also mentioned that one of the reasons for our last wave of long orders was to stop profit, because I think the first counter-trend breakthrough is often a failure, and the price at that time just retreated to the middle track of the Bollinger Band at the daily level.

It is similar to the previous situation. After the previous Bitcoin price fell, the first retracement to the middle track of the Bollinger Band also failed, and then the price continued to fall and a new low appeared on the downhill slope, but we can also observe that the subsequent price can rebound after the new low on the downhill slope.

Then at the current daily level, it is also obvious that the first rebound breakthrough failed and then began to fall, and it also broke down and a new low appeared. In the current situation, I think we can still refer to the previous market situation, and believe that the bulls will fight back again and try to break through the trend again, that is, there will be another rebound test.

If the rebound test fails, we can think that the price has really fallen below the key price position. Once the daily price position falls below, it will usher in a very large decline. Then we have to choose to short sell in the later stage.

However, I still think that we should wait for the second rebound test of the bulls. After confirming the failure of the breakthrough, we will confirm that the price has really fallen below this very critical support position, and then we can start to short sell with confidence.

Speaking of the second test of the rebound, it is a very classic situation. You can also refer to the chart. For example, the price of the top resistance level also fell after two failed tests. This is why we can often observe double tops or double bottoms on the chart. These patterns are the patterns left by the second test.

#BTC走勢分析