How to test whether the shakeout area is accumulation rather than distribution?
Observe if it is the ultimate shakeout
Ultimate shakeout manifestations:
1) Price quickly breaks through all support levels, forcing retail investors to sell (panic liquidation)
2) Creates an illusion of continuous decline, making retail investors afraid to buy.
3) Small rebound magnitude.
4) Secondary test, supply is quickly absorbed.
After the ultimate shakeout, there will be shakeout tests again. If, upon returning to the same position, the supply is quickly absorbed. The ultimate shakeout and the secondary test point are the lowest risk buying points.
According to the current BTC 4-hour candlestick chart, we should now be in the ultimate shakeout phase. After a slight rebound ends, when the secondary shakeout test can absorb all supply, it should be a good time to buy at the bottom.
Entry conditions: Gradual accumulation plan
First entry: Above 1.5% of the secondary test low (to prevent false breakout)
Add position: Break through the descending trend line (connecting the last 3 peak waves)
Ultimate position: The TD sequence shows "13" count and MACD histogram turns positive.