April 16: Preliminary Formation of M Top Structure at Four-Hour Level: Will the Neckline Break?

The daily level closed with a long bearish candlestick with a severe upper shadow, indicating heavy selling pressure above. Yesterday, Old Wang provided two southbound trades, with the second one aiming for 3000 points. In this downtrend, it's definitely unnecessary to go long. If it were around 83000, that would be decent. I still hold my short position, and Old Wang will aim for below 80,000. This means that the four-hour M top will be fully formed, which will determine the position to reach. The daily level can also be monitored for whether it develops an M top pattern, with each high point being higher than the last. The attached MACD moving average indicator shows a potential double top structure with divergence. Currently, the overall structure of the market is in a slow decline. Once the entity breaks below 83000, it will completely lead to one-sided downward movement. Of course, it is normal to have rebounds during the decline. Those with southbound tickets can hold them a little longer. I have been holding my 85400 ticket for the fourth day now, and I am very confident it will break 80.

Entry Strategy

If there is a pullback first, one can take a northbound position at 82800; this trade can be taken or skipped: Risk control at 320 points; Destination at 600 points. If there is a rebound first followed by a pullback, then this trade will not be taken.

Southbound trade at 84000: Risk control at 320 points; Target at 800 points; Position size should not be heavy, can go up to add tickets while waiting for a significant southbound move.

The road conditions can change at any time, so everyone should prepare for unexpected events. Combine Old Wang's ideas with your own to summarize your own trading system, and you will outperform most people. Not being influenced by the market's up and down fluctuations is a must-learn lesson for everyone. May the brothers find their own light in this chaotic market. $BTC $ETH