Coin Circle Jinrui 7.16: Does the head and shoulders bottom on the daily line suggest a strong rise? Comprehensive interpretation of trends at all levels

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A strong upward pattern may appear on the daily chart, but it is very important to be able to observe the market calmly while expecting the market to heat up.

From the heat map, the number of sell orders gradually increased at the high of $65,000.

In the upward trend, where should you enter the market? Jinrui will interpret it from the daily chart, 4-hour chart and 1-hour chart.

[BTC Daily Chart]

On the daily level, the 25-day EMA has been broken and the $60,000 mark has been broken. From these two points of view, it is still a market that is expected to continue to rise.

RSI exceeds 60 and there is still room for growth, so it is necessary to pay attention to possible upward trends. $64,000 to $63,500 is an important area. If support is formed here, a head and shoulders bottom pattern may appear, bringing further upside potential.

If it is supported by the 25-day moving average after a pullback and rises, a head and shoulders bottom pattern may be formed.

[BTC 4-hour chart]

The current market trend has negated the downward channel and is showing an upward trend, so it is also suitable for long positions in the short term.

However, it should be noted that $64,500 is regarded as a resistance level. At the same time, considering the gap with the 25-day EMA, there may be a possibility of adjustment in the short term. Even from a risk-reward perspective, you should wait for a period of pullback before entering the market.

[BTC 1-hour chart]

At the 1-hour level, you still need to wait for a pullback to fill the gap with the 25-day moving average, or enter the market after confirming the chart pattern. It is also a more ideal solution.

~ July 16 ultra-short-term entry point ~

① Go long with the 25-day moving average as support, near Fibonacci 23.6%. Long price: $62,800 to $63,000 Stop loss price: $62,400 Target price: $64,500

② Go long after breaking through around $65,000 to $65,200. Ideally, go long after consolidating the bottom. But in order to cope with a sharp rise, you can also set a limit order. Stop loss price: $64,600 Target price: $66,200