May 29 Bitcoin Market Analysis and Review

I. Daily Chart Status: Prices are continuously declining, with increased volume during the downtrend; the overall market is dominated by bears; previous false breakouts followed by pullbacks do not indicate a bear trap.
II. Trend Judgment: Formation of an M-top pattern, filling the gap; after a false breakout, the downtrend continues; during the rebound phase, volume diminishes, and the rebound strength is weak.
III. Support and Target Levels: Current range has little resistance on the downside, with key test points below; after the initial test, there is a slight rebound, but further downside remains possible.
IV. Trading Suggestions
1️⃣ Hold short positions: If the price breaks below the current range, consider halving the position to take profits; if the decline continues, target previous lows.
2️⃣ Profit-taking reference: When the price dips and then shows a pin bar reversal, it’s suitable for phased profit-taking; if the decline penetrates directly, continue holding short positions.
V. Risk Reminder: During consolidation, small rebounds are frequent, which can mislead retail traders into blindly going long, constituting a trap of false bullish signals.
VI. Annual Outlook: In 2026, Bitcoin’s overall trend is more suitable for short-selling to profit, as multiple pullback and consolidation zones present short opportunities.
VII. Analytical Dimensions: Judging the market by combining the rules of high-volume zones and market liquidity.