False breakouts, if we look at technical indicators, the engulfing patterns at high or low points definitely count as one and are representative.
Currently, the market consensus is very strong, and most people believe that Bitcoin can directly surge, without considering the possibility of a significant drop. Have you ever thought that the big players are now inducing the market for a larger harvest? Just like fishermen, they need to bait the water first.
Yesterday, Bitcoin strongly broke through the resistance level of 105,000, reaching 107,000, only to drop back below the resistance level. From a long-term perspective, this is a spike and shake action; on the surface, it seems nothing happened, but in reality, it experienced a sharp rise and fall. It's a nightmare for short-term traders, clearly breaking out and looking bullish, yet retracing and getting trapped. If trading according to indicators, one would have already stopped loss or gone bankrupt.
This recent high-level test is not only a harvesting action but also indicates that Bitcoin's upcoming breakthrough to new highs is gradually digesting the pressure. The longer this situation lasts, the stronger the rise will be once it happens.
Recently, Bitcoin has been in a range oscillation, and the breakout pattern that appeared last night indicates that a change in Bitcoin is imminent, suggesting that Bitcoin will have significant fluctuations in the near future. The issue of #美国加征关税 is gradually developing positively, while #山寨季何时到来？ shows that altcoins are rising for no reason, which is also a barometer for bulls and bears.
Before Bitcoin breaks through its historical high, it is highly likely that a significant drop is needed to cool down the bull market, which is also the best opportunity for big players to harvest. With the market retail investors' eagerness to chase the rise so high, it would be unreasonable for the big players not to harvest; yesterday's false breakout was just a small test of their strength.
