Sharing two market analysis techniques based on capital flow data to help you determine the true level of a rebound.

How to distinguish whether this rebound is a major trend or a small fluctuation? The key lies in the real situation on the chip side. Taking BTC as an example, it peaked at around 9030 on December 29 after a rally. The reason this wave of gains could continue is mainly due to the bottom area 1-2 days before the rebound. Historical capital flow records show that major institutions accumulated about 400 million dollars in chips at the bottom. The scale of this position-building directly determines the subsequent space and strength of the rally—since large funds have already entered, this rebound is definitely not a small-scale move.

The trading approach becomes clear: after confirming a major rebound, you can opportunistically go long at the bottom area and hold until the peak; once the top is formed, decisively reverse to short and ride the downward trend. The core is to verify technical analysis with the capital side—don't just look at candlestick charts, pay attention to where the money is going.