The market rose sharply to 95,000 to 96,000 but encountered resistance, followed by a much larger-than-expected pullback. The trigger factors for this pullback are related to the intensified decline in the U.S. stock market and the suspected actions of Trump’s son.
It is reported that Trump’s son previously made a profit by going long with 50x leverage at 85,000 points, and then went short at 93,000 points. This operation triggered a rapid panic sell-off of short-term profit-taking in the market, causing prices to fall significantly back to the previous consolidation platform. Meanwhile, this place also represents a complete filling of the CME futures gap.
Regarding the price trend of Bitcoin, it was originally expected that after a long bullish candlestick appeared, the pullback would not be too deep, and it would follow the blue path, breaking upward after digesting the selling pressure near the downward trend line. However, the current market has followed the yellow path, with prices dropping back to the consolidation platform. In the short term, this is another opportunity to accumulate positions.
Finally, let’s talk about the theory of filling gaps. Gaps are filled because there are a large number of institutional and whale buy orders at the gap. Since the market jumped directly upward, all the buy orders within the gap remained unfulfilled.
Therefore, institutions and whales will try to push the market back to the gap, allowing these unfulfilled buy orders to be executed. They want these buy orders to be filled because they are optimistic about the future market and hope to get on board. Now that the gap has been filled and the buy orders have all been executed, the future market should not be looked down upon.
#Market analysis for reference only #Does not constitute investment advice