120,000 coming~

The Trap of the Dog Dealer! The trend of Bitcoin often goes against perception, what should be the next step? Everyone, take a look at the chart.

When Bitcoin broke below the consolidation zone on Friday, a bunch of people felt like the sky was falling, expecting a big drop, and rushed to stop-loss their long positions while opening short positions. But what was the result? This was all a fake move by the dog dealer, pulling it back up, causing the shorts to get liquidated, and the longs to cut losses at the lowest point.

Meanwhile, the smart traders saw the AMD model and knew this was a trap; breaking below actually provided an opportunity to go long. Because of this, we also bottomed out Sol, which had a larger price fluctuation, and the results were good. So what should Bitcoin do next?

Currently, Bitcoin has rebounded to 118,000, and the long positions are doing well, but I think it would be best if it could touch around 120,000 again to complete the distribution in phase D; this would be the most standard move.

In the short term, it has risen quite a bit, and a slight pullback to 117,000 is acceptable. Aggressive traders can layout some long positions here, while cautious ones can just enjoy the profits made earlier and watch, trying a short position in the resistance area around 120,000, aiming to catch a pullback.

I do not believe this rise will initiate a new bull market, as the daily MACD for Bitcoin has already crossed bearish. It’s quite strong to hold in a range; even if it breaks above the previous high, it's very likely a false breakout, so don’t be deceived. If it breaks above and then falls back below the previous high, that would be a weak signal, and at that time, I will look to go short.

The above are some theoretical references. The crypto market is now deeply tied to Wall Street, and we often encounter fluctuations caused by sudden news. If there are any, we will take a look then. I like big volatility because it often represents opportunity.