2025/2/11 Bitcoin Trend Review:
Tuesday's movement was technically very standard and relatively easy to trade.
The price in the first 12 hours continued the previous day's fluctuations, forming a large range squeezing into a smaller range. There was not much volatility within the oscillating range. If one held a long position the previous day, they could close near the top of the range. One must exit at the latest by the 34th candlestick or the 39th candlestick, because the 34th candlestick is a consecutive bearish candle closing below the moving average, while the 39th candlestick is a strong engulfing signal, both closing at almost the lowest position. Regardless of whether there will be a decline, at least the price is at the top of the range, and the bullish trend has been disrupted, continuing to hold long positions will bring more uncertainty.
Up until the 49th candlestick, the bulls could not close above the EMA, instead, they were broken through by the bears, with a large bearish candle breaking out of the narrow range, forming a double top with lower highs compared to the 24th candlestick. Entering short using a sell stop below it, with the stop loss placed above the 48th candlestick.
All the way down to the 56th candlestick, there was a pause in price due to bears closing their positions for profit. At this point, if viewed on the hourly chart, there are two super large bearish candles. Such a strong downward trend has an 80% probability of a second leg down. When the price adjusts near the moving average, the 66th candlestick appears, closing at the lowest, breaking the narrow range. Entering below it with a sell stop, and placing the stop loss above the narrow range.
It is worth mentioning that both segments of the decline were very strong, always in short, shorting for any reason, selling the close of every large bearish candle, selling the close of every bullish candle, and even shorting at market price are all reasonable. Meanwhile, due to such a strong decline, measuring the open and close of the two large bearish candles on the hourly chart, doubling the measure move downwards is the target for the bears. Such a strong trend has a 60% probability of reaching the measure move, which coincidentally is also the bottom of the large range and the low of the previous day. Personally, I took a short position at the 67th candlestick and closed at the bottom of the range, which was a good short trade.
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