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"Energy Structure Warning: Bullish momentum is waning, a trend reversal window is opening, it's time to prepare to act!"
Friends, hello!
I have been observing Bitcoin's trading volume, energy, structure, and trend.
The 4-hour trading volume shrank from 50k coins to less than 4,000 coins, a decline of over 90%.
This may be related to the weekend market conditions, but the daily trading volume has indeed been shrinking these days.
The price hasn't fallen much, but the volume has disappeared first. This is not "shrinking volume to stop the decline," this is buying interest gradually disappearing.
It's not the best time to set up mid-term short positions, nor is it suitable to frequently open positions for short-term trading.
Why? Because both bulls and bears are waiting, waiting for a CPI data release, waiting for a time window, waiting for a resonance signal!
Large funds dare not move, small funds dare not move, everyone is waiting. It seems calm on the surface, but undercurrents are surging. A major trend reversal is about to happen quickly!
First layer: Energy—Multi-cycle resonance is failing
Daily volume plummeted from 1.34 million coins to 712 coins, a decline of over 99%. The bullish energy curve on the 4-hour chart is decreasing step by step, see Chart 1.
In natural trading theory, there is a saying: volume is the pioneer, price is the follower. When energy is exhausted, a trend reversal is imminent.
This "price sideways + energy at freezing point" pattern has appeared before several major trend reversals in history—before May 2021, before May 2022. Will it repeat this time? I believe, very likely!
Second layer: On-chain data—Institutional divergence, not one-sided
Weekly net inflow is $50k (the highest in four months), but daily net outflows continue. BlackRock IBIT is still buying (+$23.14 million on May 8), Fidelity FBTC is selling (-$38.95 million), see Chart 2.
It's not "institutions are leaving," but "institutions are fighting."
What should retail traders do? Historical data shows: when institutions diverge, the market often chooses the path of least resistance—downward.
Third layer: Structure—"Morphology" of Wave 4
From the February low of 60,000 to the May high of 82,860, Wave 4 has been running for over 90 days (Wave 2 only 60 days), see Chart 3.
This is not a normal rebound cycle; it’s a "time-for-space" consumption battle.
The ascending channel has reached its end, and the price repeatedly faces resistance near the upper boundary of the channel. The projection points to 82,860 as the endpoint, with the real trend being precisely blocked at 82,860. Not a coincidence, the structure is speaking.
Fourth layer: Trend reversal window—it's not "whether it will change," but "when it will change."
After spiking to 82,860 on May 7, the price sharply dropped over $2,000, with 130k traders liquidated, totaling $510 million.
This is not a "normal correction," but a prelude to a "bull-bear double kill."
The Fibonacci trend time 2.0 node points to May 12-16. CPI data is the trigger, but before the trigger is pulled, the market is already highly volatile.
Key upcoming dates: May 13 CPI, May 14-16 window period, May 22 Bank of Japan meeting minutes.
Fifth layer: Four reminders for ordinary traders
First, focus on a price range: 81,500-83,000 is the mid-term short setup zone. If the price is not there, be cautious about opening positions.
Second, focus on a time window: May 12-16. Do not bet on direction before CPI data is released.
Third, wait for structural confirmation: The two trend paths have different confirmation signals—bearish breakdown below 79,000 on the downward path, or a double top rebound above 82,000 showing a bearish signal.
Fourth, avoid rushing or holding large positions. Layered positioning, strict stop-loss. The mid-term short position's stop-loss is unified at 86,000.
Finally, a condensed message:
Energy is failing, bullish momentum is dulled, Japan's rate hike is imminent, and the Federal Reserve's rate cut is unlikely.
Wait for the trend reversal window to open and bearish signals to appear, then it's time to prepare to act!
— Mr. Long, 2026.5.10