Don't FOMO, when the market shows signs of topping out, just post a reminder, it's only a reminder.


In the previous post, I mentioned that the weekly chart is showing decreasing volume with rising prices, and the daily chart is showing increasing volume with rising prices, yet the price hasn't gone up. This is a common signal of a top or nearing a top, which is a sign for bulls to exit.
Someone said that the funding rate is very negative and still rising, if you pay attention to how the negative funding rate has turned positive recently, you'll know that this kind of oscillation and decline is the main force's best method of shaking out traders, so don't worry if it's negative now; after shaking out, it will immediately turn positive.
There's another very important signal: the open interest has been decreasing, which is a sign that the main force is fleeing and also a sign of distribution.
If a top is in, subsequent declines will be very deep, so deep that you might doubt whether there's still a bull market. This is a view I have always held; I believe the price will at least break below 60,000, which is a basic level. Whether 60,000 is truly the bottom can be seen through many subtle clues.
First, in terms of timing, the true bottom should occur in the second half of the year, around October. According to the four-year bull-bear cycle, as long as this cycle exists, 60,000 is not the bottom. Based on time projection, the bottom is expected to appear in about half a year; think about what the decline might look like over such a long period.
Second, from 60,000 to 82,800, during this rally, the main force did not accumulate positions. I've discussed this many times in live streams. For a big rally, the main force's accumulation is calculated on a monthly basis, requiring sideways consolidation at the bottom to accumulate. But from 60,000 to 82,800, there was no accumulation, only oscillation upward to stop short-sellers. This kind of movement is unlikely to lead to a bull market.
Third, if this is a bull market, this rally is the weakest in the entire bull run. From 65,000 to 82,800, the increase is 18,000 points, about 20%. Looking back at previous bull markets, a continuous one-month rally with four weekly bullish candles usually results in at least 30% gains. No bull market has risen for over a month with only a 20% increase.
Fourth, the market hasn't shown signs of an ultimate shakeout; sentiment hasn't reached extreme fear. If 60,000 is the bottom, the expected scenario would be multiple bottom tests and dips, or even a consolidation before rising, with a dip below the bottom to shake out bulls before the rally. But at 60,000, there's no sign of even a basic second test, consolidation, or dip.
Personal opinion, not investment advice.
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