Yiming's Trading Diary

All contents in this article are personal opinions and are for learning and communication purposes only. They are not used as a basis for investment. If you act based on them, you will bear the risks at your own risk.

The title I give you today does not mean that the trend will change. From the daily level, BTC has fallen below the trend. After this trend is formed, it will not end in the short term. Traders need to know the market trends in different cycles.

Yiming's view that you should not go short for the time being is mainly due to two reasons:

1: BTC has already fallen back 61.8% from its highest point so far, so a rebound is expected.

2: The U.S. stock market bottomed out and rebounded at the end of trading last Friday night. Like BTC, it is not that the trend has changed, but that there is a short-term rebound demand.

On the other hand, from the perspective of morphological structure, in most cases there will be a pullback after the daily line falls below the trend. This pullback will return to the lifeline position of the daily line and then go down again.

Summary: The current market is looking at a rebound in the short term and a correction in the medium term. This kind of rebound is not suitable for gambling, because the rebound target and whether it will reach a new low are not certain signals, so Yiming will not participate in this kind of rebound. This is only suitable for giving investors who were trapped in the early stage an opportunity to get out of the trap.

Message: The wind brings the seeds of stories, and time makes them germinate.