$BTC
From a technical analysis perspective, the conventional technical indicators and moving average systems have lost their effectiveness in the current market environment. Blindly predicting tops carries high risks.
In technical analysis, it is essential to focus on larger timeframes such as weekly and daily charts, as these cycles can more clearly showcase the overall context of market trends.
On the other hand, smaller timeframe charts like four-hour and hourly can serve as a basis for refining entry timing.
Technical tools such as Bollinger Bands and moving averages are currently exhibiting a disordered divergence state in the market. After prices break through key resistance levels, they are in a phase of strengthening trends with sustained volume release.
Making premature top predictions can easily lead to missing trend opportunities. It is important to be cautious as extreme market conditions can significantly increase price volatility. Whether it is a pullback or an uptrend, there could be substantial movement.
The core focus of the market moving forward lies in how to technically repair the current uptrend. The repair methods mainly include two typical patterns: the first is a price pullback repair, which involves a downward price movement to digest the previously accumulated overbought pressure;
The second is a sideways consolidation repair, which completes the technical indicator recovery by exchanging time for space.
Considering the previous market rhythm and space expansion, it is more inclined to believe that the probability of a sideways consolidation repair is higher. This pattern can effectively alleviate the pressure of rapid price pullbacks after significant upward movements.