|
|
Bitcoin just had a rally, breaking through $26,000 with strength. Does this signal the bulls are gearing up for an uptrend?
It might be that when BTC rises, people don't feel much of it. But lately, altcoins have been showing strong rebounds, which might make a difference.
However, the market has always been a battlefield between bulls and bears. To truly understand the essence of the market, one must rely on analyzing the current situation to find clues that support our assumptions. This is the way to truly identify whether it's an uptrend or a downtrend.
Looking at the daily chart, we can observe a few things:
1. The price has dropped below $25,400 three times without breaking.
2. The three consecutive drops occurred with decreasing trading volume.
3. There was a significant rebound with increased volume, but it couldn't break the trendline.
4. When the rebound approached the trendline, it was strongly suppressed by the bears, leading to a rapid drop in the price.
5. Yesterday, a bullish candle closed, but it lacked significant volume and had an upper shadow, indicating strong resistance above.
Based on these points, it's premature to say that the trend has reversed. The bulls don't appear to be very strong at the moment, and there's substantial resistance above. To regain control, the bulls need more volume and favorable candlestick patterns.
For short-term traders, this kind of market can be comfortable, as they can buy low and sell high. However, it's not recommended for everyone to engage in short-term trading. At this stage, focusing on major moves is crucial.
Please note that this analysis represents a personal opinion and should not be considered as investment advice. |
|
Post time 11-9-2023 13:40:22
