NineMaster

Technical analysis of the beginning and characteristics of a secondary rebound

Today, I revisited Dow Theory and came across an interesting topic. Initially, the Dow Jones Industrial Average predicted a market entering a bear cycle solely based on chart patterns, but none of the theories supported the occurrence of a bear market. Relying only on chart patterns, the market subsequently experienced a severe failure. This made me think of Bitcoin's current trend, which also shows a head and shoulders bottom pattern. If we rely solely on chart patterns for entry points, besides resisting against single orders and being stopped out, it highlights an important point: never rel

The essence of trading

Technical analysis, regarding Elliott Wave Theory! Today, let's talk about sub-wave 3 in the corrective wave. This wave often has a strong destructive power. The main reason and the principle behind the impulsive wave are consistent. There is little consensus on wave 1, and wave 2 corrects the rise and fall of wave 1, while wave 3 often has explosive strength.

A high-probability analysis of Bitcoin's current trend suggests that after the triangle pattern, Bitcoin moved in an X wave to connect this correction's platform wave, forming a complex joint correction wave. However, the main direction has not changed and remains bearish. Currently, traders can take a long position to ride a 5-wave upward move. After completing the 5-wave rally, look for opportunities to short.

Here's a simple explanation: I often see many price levels on the chart, indicating specific points where you can either go long or go short. When the price reaches a certain level, you can add to your position or close it. For example, if Bitcoin drops to 67,000, 66,000, or 65,000, these levels are considered bearish trends. So, trying to buy the dip within a downtrend can be quite risky. Similarly, when the price hits 72,000, you might go short—that's the same principle. This is shorting within a bullish trend.
Sometimes, when the price hits these zones, the trade works out successfully, an

I hope you can understand.

My stance on BTC remains unchanged. Since yesterday, the trend has been following a consolidation pattern, and I am currently holding a short position with a stop loss above this true breakout candlestick. Figure 1 shows the conclusion from yesterday's analysis, and Figure 2 indicates the true breakout point for the bears today.

Bitcoin's rise today, if described as a reversal, I think it's too blind. I believe this current upward movement is a combined consolidation correction of the c4 wave correction wave. As shown in the chart, the main bearish outlook remains unchanged.

Currently, the strategy for Bitcoin includes stop-loss at 67,000 for short positions. The position can be held for a while to observe if there is a trend, as this wave is the main decline wave of the C5 wave.

After a long position rebounds and is stopped out, taking a short position in reverse may lead to the main decline wave of wave C5. The light position stop-loss target is 60,000, with a second target of 55,000.

Bitcoin long position, with clear take profit and stop loss levels

Btc personal view, requires observation. After completing a Wave 1, a triangle convergence pattern has formed, linking to Wave X. The continued decline is likely a combined consolidation pattern, meaning after the triangle, linking to Wave X, it completes a zigzag correction that just tests the inside structure of the triangle. Moving forward, it’s necessary to observe whether it can stabilize and then continue to open long positions, rather than short positions. At least before 69,000 to 70,000, be cautious with shorts. Regarding the three-minute structure, there is still a Wave 5 decline, an

Post about opening a trade and sharing it, definitely not missing out. The second image shows the predicted trend from last night.

Short position based on strategy, take profit and stop loss at 1:1 ratio

For the two possible scenarios of BTC's price movement, the first involves a triangle contraction followed by a direct breakout above the previous high to reach 69,000. The second involves testing the current high, then moving through a 5-wave correction pattern, declining back to around 66,400, and then rising again to 69,000. The final outcome in both cases is bullish, so we need to observe what type of correction pattern this is.

Understanding the trading approach for BTC as shown in the diagram