Bitcoin Daily Level "Key Points Overview": (Teaching Section)
As shown in the figure below ⬇️ with the market cheering, everyone is waiting for Bitcoin to hit 110,000, I want to give everyone a risk warning ⚠️ (All the words are typed out one by one, I hope everyone respects my hard work! Thank you)
Divergence in Volume and Price:
As shown in the figure, the price at the daily level is increasing, but the volume has been decreasing (volume-price divergence). This is a manifestation of the main force having high control over the market, controlling a large number of chips and forcing the price to increase. If, in the subsequent upward movement, there is a sudden surge in trading volume, then everyone needs to be cautious, as it indicates that the main force is starting to offload!
Upward Channel:
Bitcoin has been in a continuous upward channel at the daily level for a month (11.15-12.15). Tomorrow will close the monthly line, and we can take the downward channel below as an example. The downward channel needs to focus on the breakout point at the upper edge, and after the breakout, it will form a strong upward force to drive the market. Whether it is an "upward channel" or a "downward channel", the final outcome of both will certainly leave the channel area. At this time, how should we judge the topping behavior?
Method: When the upward channel suddenly shows a breakout with increased volume at the top, it means that a top structure is about to appear, because the previous upward channel has accumulated a large number of profit positions. Market retail investors will be overly excited about the K-line behavior breaking through the channel, leading to chasing behavior. At this time, the main force will take the opportunity to distribute and offload (because this is definitely the best opportunity for the main force to realize profits).
Summary: With the volume-price divergence and the monthly line closing soon in the upward channel, I personally dare not chase up and go long anymore. I am more inclined to capture the top structure and primarily short at high positions, while altcoins can wait for Bitcoin's correction to end, looking for good entry points. (All conclusions and analyses are only for #BTC )
