A relatively typical pattern has appeared in the short-term chart of BTC: the M-top. I have mentioned before that this pattern is not suitable for making individual long or short trades; it needs to be combined with the current overall market conditions, and then find key locations within the pattern to act, as shown in the figure:

The operational strategy can generally be followed through the steps below:

1. Determine the overall trend (upward, sideways, downward); 2. Based on the overall trend, identify key positions (upper and lower edges) in the chart pattern; 3. Open a position and set take profit and stop loss (take profit can be moved).

A few days ago, I mentioned that the daily MA30 moving average was broken and flattened, indicating that the upward triangle of the daily MA30 has been damaged, and the short to medium term has actually shifted from upward to sideways. Yesterday, I said it was a good thing that Bitcoin is maintaining sideways movement here, as it increases the probability of horizontal adjustment or bottoming out.

We can see that when the third day of the downtrend closed, the price of the daily MA60 moving average was $88,000, and now it is $91,726. If the K-line can maintain sideways movement above $92,000, the larger moving averages will converge towards the K-line, and larger moving averages often have a supportive effect. This is also one of the methods to judge the strength of the market.