At 8 o'clock last night, Bitcoin broke through the slightly downward sloping parallel channel with large volume. The pattern was completed, ushering in a wave of rise, and finally broke through the previous high with large volume.
Such two strong K lines, and both of them were released with huge volume, indicating that the bulls are very strong. Logically speaking, it should continue to rise, but it did not. This also shows that there is pressure on the upper short-term and it needs to oscillate and accumulate energy.
The breakthrough with huge volume did not continue to rise. The power of the bulls was not fully released. After the breakthrough, it stepped back to the support level, which is to confirm the effectiveness of the support below. The K lines of the last two four-hours stepped back, the entity became smaller, and the volume shrank, which shows that the short-term power is very weak.
The stepping back did not fall below the support level, and a cross line was closed, indicating that the support below is very strong. This position is a short-term entry point, and the stop loss is placed a little below the support level below.
Entering the market at a key position for short-term trading is a small mistake even if it is a mistake. Such a strong breakthrough market, after the support is confirmed, will usher in continued rise in the future. Encountering such a market will greatly increase the winning rate of short-term trading.
You can't short at this position. Even if you don't see a bullish outlook, don't take the risk of shorting. Even if you wait and see, it's better than shorting. After all, there will be no loss if you wait and see, but the risk of shorting is very high.
A few days ago, we talked about trends, which belong to long-term, and today we are talking about short-term. The levels are different. You can't do short-term based on the analysis of the previous two days, nor can you do long-term based on today's analysis.
The four-hour market changes very quickly. Short-term trading should be stopped when it is good. You can't let yourself be trapped because of greed. Short-term trading emphasizes capital utilization, so you must be willing to stop profit and dare to stop loss, otherwise the meaning of doing short-term trading will be lost.