Tuning: There is a short-term pullback risk, but it won't last long; it will rise again in mid to late month.
After Bitcoin hit a new high last Friday night, it did not continue to rise; instead, the bulls seem a bit weak. In response, Yiming's viewpoint is
There is a short-term pullback risk, but it won't last long; it will rise again in mid to late month. The reasons for this viewpoint mainly include the following points.
1: The time point meets this condition.
1: Since BTC started rising on April 7, it has been 28 days until May 5, which is a key time point in Gann theory.
2: May 5 is the beginning of summer in the 24 solar terms, and it is a day of four absences.
When important Gann turning points coincide with solar terms, we need to pay attention.
2: Position
1: BTC has been rebounding since April 7 and is currently around 61.8%.
2: The US stock market is approaching an important resistance level. Through wave analysis and lifeline analysis, the Nasdaq Index is in a strong resistance zone between 18200 and 18300, and last Friday night it reached around 18050.
Three: Structure
1: Currently, the BTC four-hour lifeline has been broken. The previous upward process involved a pullback to the lifeline before continuing to rise, but this time it has broken through, indicating that the upward momentum is weakening and there is a need for a pullback.
However, there is no need to panic about this pullback; it is unlikely to exceed 88000. The lifeline is the only standard for Yiming's trading system to judge trends. Currently, the four-hour lifeline position is at 96100, and the four-hour close in the morning has already been below it, having broken through once yesterday, which is a signal of a turning point. This is also an important part of our designated trading plan regarding entry positions, stop-loss locations, and the calculation of opening volumes. This is clearly referenced in the trading system. If you are still anxious about strategies and troubled by the trading system, feel free to leave a message in the comment section below the article to chat with Yiming and help you improve your own trading system.
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