The Essence of Trading: Understand Market Signals, Rather Than Relying on 'Feeding' - Bitcoin Pattern Projection and Key Level Strategy
The Market is the Answer: A Straightforward Guide to Pattern Language
Is trading difficult? In fact, the market has long provided the answer - it's just that most people are used to 'waiting for ready-made solutions' and are too lazy to break down chart logic. Look at the white arrows in the chart: Bitcoin broke through $116,000 and the triangle, completing a directional choice with an 'upward continuation' pattern, ultimately breaking above $117,000; currently, it has pulled back to the upper boundary of the triangle for support, re-entering a continuation consolidation, with a clear signal: as long as it does not break below $116,000, the only way out is upward.
If it stabilizes above $117,000 and goes through another wave of continuation, it will directly target $118,791 - this is the preliminary checkpoint for the bearish butterfly pattern's D point ($120,839). Breaking through $118,791 would challenge the butterfly D point, and if stabilized after that, we can look towards previous highs or new highs; if it is blocked at the D point, a pullback is inevitable, and the current rebound limit can be temporarily anchored here, with subsequent observation.
Key Point Trading Strategy
• Conditions for Going Long:
1. Volume breakout above $116,795 → chase long on the right side, volume is the core verification indicator;
2. Stabilize above $116,980 → increase long positions, target $117,630 → $118,869, breaking above $118,869 would make $120,000 likely;
3. Daily line returns to the box + breaks the box's midline (supported by U.S. stock market opening) → probability of rocket-like rise greatly increases, relying on $116,000 for defense.
• Conditions for Going Short:
1. Volume breakdown below $116,400 → chase short on the right side, if the pullback cannot recover, stop loss;
2. 4-hour level breakdown below $116,003 → look down to $115,042 → $114,081, if this level holds, the bullish trend remains unchanged;
3. Encounter resistance in the $118,791 - $120,839 range (butterfly D point reversal signal) → lightly test short, stop loss if new highs are broken.
Strength and Weakness Determination of the Daily Box
The daily line returns to operate within the box, marking the start of bulls gaining control: as long as it does not break below the lower edge of the box, a strong upward trend is the main theme. If the U.S. stock market opening can break through the box's midline, it would be equivalent to equipping Bitcoin with a 'rocket booster', further confirming the strength.
Summary: The core of trading is understanding market language - Bitcoin's continuation pattern points to a breakout, $116,000 is the bottom line, $118,791 is the short-term ceiling, and breaking through the box's midline at the U.S. stock market opening is an acceleration signal. Look less at news and more at charts; the answers are in the candlesticks.
