BTC Technical Analysis: Ordinary People Can Understand

1. Daily situation: The BTC daily candle looks a bit like a doji bullish candle. What does this indicate? It means that the recent short-term price fluctuations are becoming smaller. You see, in the past two days, the price lows are almost on the same level, as if they are flat bottoms, which feels like it's consolidating or building up strength.
2. Trend Formation: From an overall perspective, it has formed a triangle pattern. It is still early for this triangle to reach its peak, so in the short term, the price is expected to fluctuate back and forth within this triangular pattern.
3. Volume performance: The volume in these three days has not yet reached the standard where a reduction in volume would signal a trend change. It's like in battle; to decide which direction to charge, sufficient troop strength (volume) is needed for support. In the absence of a significant increase in volume, it is highly likely that the adjustment will continue to follow this triangular pattern in the short term.
4. 4-hour chart situation: In the 4-hour chart, the current price is either near the areas where chips are concentrated at different stages or just below them. It is clear that it is consolidating sideways, with little price fluctuation.
5. Competition in the Descending Channel: The BTC price is in a descending channel, fiercely contending around the middle track of the channel, with both bulls and bears fighting hard, entering a heated phase. This middle track is particularly critical, like a line that divides the short-term trend into bullish and bearish sides, serving as a watershed for bulls and bears.
6. Key Position Description:
- The upper trendline of the descending channel, it is a resistance level. If you want to go short, you can refer to this position.
- The middle track just mentioned is the dividing line between bulls and bears.
- The lower band is a support level. If you want to go long, you can refer to this point. Moreover, the lower band is approximately at the same position as the long-term EMA, which forms a double support, making the support stronger.
7. Summary: In the short term, neither the bulls nor the bears have a clear advantage, so short-term trading mainly involves oscillating back and forth within a certain range. From the perspective of swing trading:
- If you still have a bottom position from your previous short position, you can continue to hold it.
- If the price reaches a low point, and multiple support positions coincide and resonate, then it is suitable to quietly ambush and place a long order.