It’s starting to fall! Bitcoin has broken below $77,000—could there be a major reversal tonight? When can we buy the dip? Let’s take a quick look.

1. First, Bitcoin is starting to pull back! The daily chart has formed a death cross, and momentum is weakening. Without any additional positive catalyst, it may pull back to around $76,000 over the next one to two weeks before finding support again. However, in the short term, there may be a reversal tonight or tomorrow night!
2. Keep in mind that the current decline is simply due to concerns about inflation. However, important inflation data will be released at 8:30 tonight—PPI! The market currently expects inflation to rise sharply, but if the actual result comes in below expectations, the crypto market may rebound slightly.
3. In fact, PPI is just an appetizer. Tomorrow, the market will get the more closely watched CPI inflation data! Personally, I don’t think it will necessarily be negative, because the oil price surge happened in September, while the data released on Friday covers August. Oil prices were not that high in August, so there may still be a reversal.
4. So the current market situation is very clear: if there is a decent rebound over the next two days, remember to exit at the top if you failed to do so earlier. If there is a good high point, you can also open some short positions. A pullback is very likely after the crypto bill decision next Tuesday.
5. I told everyone to exit at the top a full week in advance. As shown in the chart, Bitcoin was still at $80,000 when I posted yesterday, while Sol and CRCL have pulled back nearly 10% this week. If they fall a bit further, I may start buying some. Be patient and take things step by step—the bigger major upward wave is still coming at the end of the year!