BTC Trend Analysis: Building a Double Bottom Above 10500
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Note: CSI100 is the "Shanghai Composite Index" in the CSI index series. The sample consists of the top 100 tokens in terms of size and liquidity, with a market capitalization coverage of 96%, reflecting the overall trend of the token market.
Note: CSI100 is the "Shanghai Composite Index" in the CSI index series. The sample consists of the top 100 tokens in terms of size and liquidity, with a market capitalization coverage of 96%, reflecting the overall trend of the token market.
BTC
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In the past few days, there are still a lot of bad news: PlusToken’s funds have run away (burying a huge hidden danger of smashing the market); the number of Bitfinex short orders has dropped sharply (the last time this happened, BTC plummeted by more than 20 points); The situation has improved, and the risk aversion sentiment of funds has weakened. Everything seems less friendly to BTC.
As shown in the figure above, since BTC plummeted last week to the small platform support of 10,500, it has rebounded weakly, and then continued to fall, and is currently testing the previous low support level again. If it is supported, BTC will save the day, and after building a double bottom, it will go out of the rebound market. Once broken, it will accelerate down to around 9300-9600.
As shown in the figure above, after BTC came up from 6000, it stepped back on the platform support at least twice at the bottom support of the three platforms of 7000, 7500, and 8800, and then continued to build the platform upwards. From a technical point of view, after BTC soared from 8,800 to 14,000 this time, there is also a need to step back on 10,500 to confirm support many times. From the perspective of the big picture, the construction of a double bottom will strengthen the stage support, which is beneficial to BTC's subsequent upward attack.
Judging from the upward trend line starting at 7500, BTC is currently just around the trend line support. This position can be said to be very critical to the overall trend of BTC.
On the Bitfinex platform, BTC has 19341 long positions and 10667 short positions, and the long-short ratio has risen to 1.8. As mentioned earlier, short positions have dropped sharply from 30,000 to just over 10,000. The last time there was a sharp drop in short positions, BTC did plummet. However, the situation is different this time. At present, the number of long positions is not large, and the logic of exploding long positions also lacks sufficient basis.
At present, this phenomenon can only be understood for the time being: the number of empty orders was at a high level before, and it was the main force playing tricks to create an expectation for the market to explode and rebound, and then to complete the harvest by smashing the market. At the same time, it also reminds us that in the case of a high degree of market control, the law of "the historical highs of empty orders usually appear to burst and rebound" can also be broken.
