11.8 Bitcoin's breakout magnitude is not high! Has the uptrend ended?
After reaching a new historical high yesterday, Bitcoin underwent a brief pullback, finding support around 74500 in the afternoon to evening. Then, early this morning, it broke upward again, reaching a new historical high, with the highest price around 68000. The current price has pulled back to around 75800.
For three consecutive days, Bitcoin has continuously reached historic new highs, but we can also see from the current short-term market that although new historical highs are being broken consecutively, the overall breakout magnitude compared to previous highs is not very large. In the current situation, there may be some hidden dangers, and it is also possible that the upward trend is losing strength.
Of course, it is not possible to directly go bearish now, and today is also Friday, approaching the weekend. Generally speaking, it is normal for there to be no significant market movements on weekends. Currently, I see the pattern resembling an upward wedge with three pushes. This kind of movement usually returns to the starting point of the three pushes to find support after a failed breakout.
At present, I believe this starting point is around 73000. If it is confirmed that Bitcoin's breakout momentum is insufficient and the breakout fails leading to a pullback, we can pay attention to the support situation at this point, as it could be an opportunity for the next round of entry.
Of course, we can also clearly see that today's pullback is less than yesterday's. I judge that this is mostly because today is already Friday, so I believe the pullback may continue, urging everyone to pay attention to the possible support level below.
However, if you are entering at a relatively good position, there is no need to worry at all. Although the breakout magnitude is not high, today's pullback is not very deep, and the speed of the pullback is not particularly fast. Overall, the price is still in an upward trend.
There is a possibility of continued rise in the evening, unless the price experiences a significant increase followed by an immediate large drop and a failed breakout, or if it continues to undergo a deeper pullback, then we will consider the price may retrace to the support level I mentioned earlier. Otherwise, we are still bullish now.
