10.1 Has Bitcoin liquidated long positions? Is the rise about to begin?
Yesterday we mentioned that Bitcoin suddenly plummeted after consolidating at the top. At that time, I thought that this decline should have just begun and could not be stopped. I provided you with references to the two key support levels below. The first is the support level above the trend line, and the second is the support of the previous low point.
Then we can see from the current market that the subsequent Bitcoin price continued to fall, falling below 64,000 and then below 63,000. The lowest price is currently around 62,800. Now the price has rebounded slightly to around 63,700.
Then our current view is still the same as yesterday. It was very clear yesterday that we would not be bearish before the price broke down. This may be a performance of the bulls before the rise. Many times, there will be a wave of declines before the rise to liquidate those who are not firm in the long position, and then the price will continue to rise.
Here we can give an example, which is the market situation that happened not long ago. When the price rebounded and broke through 60,000, it rose very quickly, and then the price began to go sideways after reaching 60,000, as shown in the box in the figure. After the sideways movement, it gave a relatively large decline.
Note that this is a four-hour level decline, which is similar to the decline and correction degree of yesterday. The price fell back to the low point before the previous surge, and then stopped falling temporarily. Then the price immediately rebounded and broke through 60,000. After hesitating for a while, it started the upward trend again.
