The market trend on Monday has emerged, coincidentally clearing the short liquidity that appeared on January 31, which is the 106k~107k area we have repeatedly mentioned;
With the boring oscillation market of last week coming to an end, both bulls and bears in the current market have begun to gradually accumulate considerable liquidation volume.
According to the reasoning from last Monday's citation...
The overall structure of the current market remains a volatile upward trend, so although the short liquidity is not as much as the long, one cannot simply assume that it should be time to liquidate the longs...
Only when the bullish trend structure of the price shows signs of damage can one consider the possibility of a deep pullback or even a reversal, and this critical threshold is around 100600!
As for the current situation, or rather the market expectations for this week, I still believe we can maintain a bullish outlook or stick to the original range oscillation idea;
As long as the two low-density long liquidation zones below the current price do not gradually turn into high-density, then the price can continue to test the previous highs and proceed with liquidations.
If any negative news occurs this week causing the price to break below the lower edge of the current range, then this long liquidity will trigger a chain liquidation, until around 91000;
Similarly, if the market continues to buy, then the short liquidity above can also trigger a chain liquidation, pushing the price up to around 117000...
You can refer to my chart and label the price positions yourself. The upper edge of the yellow rectangle above the price are potential resistance levels, while the lower edge of the yellow rectangle below the price are potential support levels!
