Technical analysis of the futures market usually divides the market into three trends:
1. Uptrend: Both the highs and lows of prices are gradually increasing, indicating that the market is rising.
2. Downtrend: Both the highs and lows of prices are continually decreasing, indicating that the market is falling.
3. Sideways trend: The highs and lows of prices remain parallel, indicating that the market is in a consolidation period, with price fluctuations lacking a clear direction.
That's right, a sideways trend is also considered a type of trend.
Starting from October 2024, Bitcoin entered the uptrend phase, where the highs and lows of prices are gradually increasing; however, in mid-December 2024, Bitcoin's trend shifted to consolidation, meaning the highs and lows became parallel.
Therefore, Bitcoin's current trend is in consolidation, which means we should adopt strategies suitable for a sideways market, rather than blindly chasing highs and cutting losses.
Understanding this is much more important than predicting whether Bitcoin will rise or fall today.
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