After BTC violently plunged below 60,000 points yesterday due to the news, it finally rebounded! At 3 a.m., it rebounded to a high of 62,400, nearly 4,000 points from the lowest point. The current price has fallen back to 62,000 points.
BTC one-hour candlestick chart
ETH also rebounded sharply, from 3240 to 3430, nearly 200 points, and the current price is 3417.
Current market focus: Can the rebound continue?
In the current market environment, we need to focus on whether the rebound can be sustained. The current rebound can only be regarded as a short-term phenomenon, and its height depends on the continued strength of the bulls. If the bulls cannot maintain their strength, the rebound will be difficult to sustain.
Key patterns at the daily level
To determine whether the bulls are able to reverse the bears’ trend, we need to observe the formation of a bottom pattern on the daily level. This is the minimum requirement to measure whether the bulls are strong enough. If even the bottom pattern on the daily level cannot appear, it means that the bulls are very weak and cannot effectively counterattack the bears.
Minimum requirements for long positions
The formation of a bottom pattern at the daily level is the minimum requirement for bulls. If even this pattern cannot be formed in the market, the bulls will appear very weak and unable to push the market to rebound further. This means that bulls need to continue to exert their strength in the short term to form a bottom structure technically and lay the foundation for a larger-scale rebound.
Rebound height
The height of the rebound will depend on whether the bulls can continue to exert their strength in the following period. If the bulls can form a bottom pattern at the daily level and continue to push the market upward on this basis, the height of the rebound may exceed expectations. However, if the bulls are not strong enough, the rebound may be short-lived and difficult to sustain.
Short-term focus: 30-minute level of long and short forces comparison
In short-term operations, the easiest way to judge the strength of the long and short forces is to observe whether there is a secondary buy signal at the 30-minute level. If there is no secondary buy signal at the 30-minute level, it means that the short force has not yet been completely exhausted. Only when the secondary buy signal appears can it be shown that the bulls have begun to intervene and have enough strength to resist the pressure of the bears, not giving the bears the opportunity to create a new low again.
The Importance of the 30-Minute Level
The 30-minute trend is of great guiding significance for short-term operations. Observing whether there is a secondary buy signal at the 30-minute level can effectively determine the current changes in the long and short forces. If a secondary buy signal appears at the 30-minute level, it means that the long force is beginning to increase and the market may usher in a short-term rebound. If there is no secondary buy signal, it means that the short force is still strong and the market may continue to decline.
Short-term strategies in the current market
For the current market, we need to pay attention to the rebound of Bitcoin and Ethereum at the 30-minute level. Specifically, we need to observe whether the rebound ends at the conversion relationship between buy and sell points after three sell signals. This means that we need to pay close attention to whether the market turns to a second buy after three sell signals, or continues to set new lows.
If a secondary buy signal appears, it means that the bulls are beginning to intervene and are strong enough to resist the bears, and the market may rebound in the short term. In this case, you can consider increasing your long positions appropriately and follow the market trend.
If the market keeps hitting new lows, it means that the short position is still strong and the market is under great downward pressure. In this case, you need to be cautious and avoid blindly buying the bottom. You can consider reducing your position or waiting and watching.