Good afternoon everyone, I am Fang Yuan

The market is still in a downward trend. However, there is a high probability that a rebound will first occur today, filling the gap around 72,000. After that, the decline will be resumed.

Big cake (BTC) fell from the 73,700 level yesterday, gradually moving downward. It hit the support level near 70,000 at its lowest point, then stopped falling and rebounded. The single-day drop exceeded 3,000 points. Today, a parallel bottom formation has formed around 70,000 and has started to rebound. You should note that parallel bottoms and parallel tops are essentially the main players’ commonly used methods to lure traders into long or short positions. In the future, they are often broken either way—either broken down or surpassed upward—so the probability that the subsequent move will break below the 70,000 support level is extremely high.

The next trend is basically clear: 73,700 is essentially the stage top of this rebound. High levels like 76,000 and 78,000 are basically difficult to reach. The current 1-hour and 4-hour upward structure has been destroyed. The price keeps making new lows, which is a typical signal of a bearish decline pattern. It’s just that a higher high lower than the current one has not formed yet. It is expected that this structure will play out today.

In terms of the overall rhythm, today is likely to first rebound to fill the daily-level gap near 72,000. After the fill is completed, it will continue moving downward, breaking the parallel bottom near 70,000, and officially establishing a downtrend.

The above is only my personal views on market analysis and does not constitute any investment advice.
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