Chuan Theory Market Analysis 1126: The classic reversal pattern of BTC has finally come!

What was bound to happen has finally happened, albeit late!

In last Friday's article "Trend Extension", a warning about the high-risk of BTC was issued again! After reaching a new high of 99588 at midnight on the 23rd, Bitcoin has been undergoing high-level fluctuations for several consecutive days, including the weekend. At 5 PM yesterday, a rebound triggered a second sell at 98871, followed by a significant drop in volume during the night, reaching a low of 92600, with the current price at 94000.

This account issued a signal in the community at 6 AM on Saturday morning indicating that altcoins would experience a surge over the weekend. Over the two days of the weekend, many altcoins soared, with most seeing increases of 20-50%. Friends who kept up with the rhythm reaped substantial profits.

Risks often arise from price increases; this time, Bitcoin provided ample time for profit-taking before the major correction. Of course, those who couldn't take profits at the high need not panic; this is merely a downward correction at the 4-hour level. The bull market is still in its mid-to-late stages, and the overall direction remains bullish. Long-term positions may still be held, waiting for signals from larger structures.

First, let's look at the daily chart of Bitcoin. It can be seen that a strong top splitting pattern has emerged on the daily line. When combined with the position of the MACD and the alternating red and green bars, it can be judged that at least a downward correction on the daily line is needed. At this level, the high MACD retracing to the zero axis indicates that the secondary level needs to construct a base.

Next, looking at the 4-hour chart, we can see that within the upward segment, there is a three-part divergence pattern, which is a classic reversal pattern in Chuan Theory. A downward correction in the 4-hour segment is about to take place, and the range of this correction can be referenced to the central range on the left side, with a high probability that it will result in a third buy before moving to the previous segment. The specific return position will need to focus on the growth evolution of the secondary level's trend type.

Finally, looking at the 30-minute level, the internal structure of the upward segment in the 4-hour chart can be seen very clearly at this level. The classic two central upward trends diverged downwards, followed by a rebound confirming the correction trend.

Summary: From the current correction's intensity, it is in a volume-increasing non-divergent downward state, so we can conclude that the decline will not end before a new 30-minute central pattern appears. Those looking to buy the dip are currently only targeting the small-level bottoms of 30 minutes and below. Major level opportunities require patience, with a time frame of at least 7 to 10 days.