Be careful with going long! This week's market is essentially a typical bull trap!
Bitcoin's early-week surge and subsequent drop with a long upper shadow and small body have signaled stagnation, but the consecutive bullish days on Tuesday and Wednesday created a false breakout illusion, attracting more buyers. However, Thursday's bearish engulfing pattern is where the true picture emerges, as a large bearish candle completely swallowed the gains of the previous two days, confirming the warning from Monday's shooting star.
In terms of operations, I tend to go short with the trend, and the ideal entry zone is between 121,000 and 122,000, which is the upper part of Thursday's bearish candle body. When stagnation signals appear in the hourly cycle, I will consider shorting, with strict protection at 123,000. A breakout of the previous high would invalidate the pattern. The target is set at 117,000 to 116,000, which are Thursday's lows and psychological support.
As for whether the market can reverse the decline, it entirely depends on whether the 112,000 level can withstand the bears' second assault. If it can't hold, it will mark the beginning of a technical shift from bull to bear.
Some are facing liquidation, while others are shivering in fear. If you're always uncertain, the winning streak of the trading team continues. If you want to know about the Shen Dan strategy and learn the methods, you can follow Brother Feng's lead.
