BTC's daily closing price was 69681, showing a downward engulfing pattern. At the same time, it fell below the daily small-level upward trend line in the morning. The bulls' attack completely failed, and the market structure returned to large-range shocks. A potential triangle convergence structure is forming;

Good morning! Let’s look at the technical aspects first:

As mentioned yesterday, the small range of 68500-69300 (the green area in the picture) is likely to become the long-short dividing line in this large shock range. If the price steps back to gain support in this area, then there is the possibility of an upward breakthrough. If If the price falls below the range and fails to rebound above this area, it may be preparing for a downward breakthrough; considering that the current large-scale structure is very likely to form a triangle convergence structure, then this dividing line is likely to be tested again , then you need to pay attention to whether the rebound can successfully break through; the K-line structure seems obvious. If the upper edge of the triangle fails to break through, it will go to the lower edge to find support. Considering that the current callback speed is very fast, there is no reference on the disk. The downward trend line is a small level, so it can only be regarded as a rapid correction rather than the start of a short trend, so the overall market tends to be volatile. Since the price fell below 68500, we give one point to the bears!

Liquidity level:

The rapid decline in the morning liquidated the evenly distributed long liquidity below. In a short period of time, only the short liquidity magnetic zone above was left on the market, which was around 72,000 and the previous high respectively;

The total amount of this part of short liquidity is not small, so in theory it will still be attractive to the price. However, this part of the short liquidity has not been liquidated during the week of shocks, and the price has always been suppressed below the liquidity zone, which makes people feel uncomfortable. We have to wonder whether these dense liquidity magnetic areas will come from big funds or "main players"; at the same time, starting from the previous high, the short liquidity magnetic areas have moved downward in a step-by-step manner. There is a certain probability that the current market will no longer be interested in these Liquidity is liquidated, which is often a precursor to a brewing trend. Long liquidity similar to 50,000 and 33,000 has not been liquidated so far; therefore, consider adding 1 point to short positions; on-chain data: miner net inflow data has not been updated yet 4- 1 day, so it is impossible to judge whether the current main supply comes from miners. I will tweet corrections in time when the data is updated;

Judging from the performance of the first three days alone, the selling pressure of miners is weakening. However, considering that the data on weekends are always lower and tend to increase again on Mondays, it is better to wait for the data to come out before doing a separate analysis. ETFs net inflow data: Unfortunately, the speculation in [Disk Information Update] last night came true. ETFs data on Monday showed a net outflow of US$85.7 million. Although it is not a lot, the impact of the net outflow on sentiment is still large;

In the bullish trend of the past two months, Monday to Wednesday are often the three days with the highest ETF net inflows, and the net outflow immediately appeared on Monday, which seems to indicate that the market will repeat the rhythm of the last daily level correction to 61,000; however, the good news is that the main bulls of ETFs: BlackRock and Fidelity have maintained net inflows from beginning to end. The main reason for yesterday's net outflow is still due to Grayscale's increased selling efforts. Grayscale's $302 million outflow of funds did not all return to the market, which is a noteworthy detail. However, the net outflow is a fact, respect the facts and data on the market, so add one point to the shorts; Summary: Long: 23
Short: 20

From a technical and data perspective, it is possible for short sellers to catch up with long sellers. If miners’ data is updated and net inflows are found to increase again, it seems to explain why ETFs’ data has stretched again.

Just wait for the data to be updated! If this article is helpful to you, please like and forward it!