BTC reaches a critical position

Will it continue to break through or continue to bottom out?

BTC officially broke through the critical resistance level of 112000 yesterday, reaching a maximum of 112500. Today, it started to retrace, and the funding market has dropped back to around 110000, a decline of more than 2000 points. BTC has not stabilized at the 112000 level I mentioned yesterday. Since it has not stabilized, does it mean that BTC has already peaked? Or will it continue to break through?

First of all, from a structural perspective, BTC has broken through the descending channel line. The current retracement has not fallen below the descending channel line. As long as it does not break below the descending channel line, there is no need to rush to conclusions. This means that whether the upward trend has ended is still to be observed. If it rebounds at the support level of the descending channel line, BTC is expected to continue breaking through, with the highest likely around 113400. If this retracement breaks below the descending channel line, it is very likely to continue probing the critical level of 105000. Therefore, the market is currently in an uncertain stage, and we should not rush to open positions. We can choose to go short around 113000 or wait for BTC to probe down to around 105000 to buy at the bottom. Whether it rises first or falls first, we also need to adjust according to the actual situation.