Last week, BTC closed with a hammer line, which is a very characteristic candlestick and also represents a strong divergence.
The bottom lead is long, which means that the price was quickly bought back after the previous decline, eventually forming a signal of stronger bullishness.
So just looking at the weekly chart, this is a K-line that tends to be bullish.
BTC——1D
Maintain the original two perspectives at the daily level
1. Distribution at high levels. In terms of the oscillation cycle and the completeness of the rise, the conditions for distribution are met.
If you follow this perspective, then trading should focus on shorting on rebounds.
2. Weak rising relay, in the big rising trend, the trend has not been completely destroyed, this round of callback performance is also relatively weak, showing a flag-shaped decline, but the core price of 52,000 is still not touched, which is a normal state. At the same time, the recent short-term strong rebound is also a good signal.
Although there are two completely different viewpoints on the daily chart, it is still necessary to find key positions and wait for trading signals to appear rather than trading rashly.
BTC——4H
There are some more detailed features in the 4H cycle
1. Since April, the market has been fluctuating downward
2. The vertical head line of the weekly line is decomposed into a V-shaped inverse pattern in the 4H cycle, which is also a manifestation of short-term bullish strength.
3. After the bulls have finished their strong run, the market has entered a narrow range of fluctuations, which can be temporarily identified as an upward relay.
4. This round of strong price stagnation at the previous high point, there is horizontal suppression here, which resonates with the rising relay pressure. At the same time, this is also an important pass to break the shock and decline pattern. Only when it is successfully broken through here can it be declared that the shock and decline trend that has lasted for a month has been reversed. Only then will there be a chance to break out of the weak relay shown in the daily line.
So on the whole, the current price of Bitcoin core is between 64600-64800. If it breaks through, the bulls will continue to rise. If it fails to break through, it will still be suppressed, and it will still be weak in both large and small cycles.
However, if a breakthrough fails once, there may be a second or third attempt. Combined with the strength of the 4H cycle, I think it is not recommended to be bearish as long as the strength of the 4H cycle is not destroyed.
So we ultimately develop our trading plan around this key position.
The price breaks through 64600-64800, chase long
If the price fails to break through and the 4H upper oscillation structure is broken, you can try to go short. The tentative core price is 62400-62500.
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