Arlong's Market Watch:

Today’s market is dropping quite sharply, but during the day it might rebound first, filling the gap around 72400, then continue downward.

Yesterday, BTC plummeted from 73700 all the way down, only rebounding after hitting around 70000, dropping over 3000 points in one go. This morning, it formed a parallel bottom near 70000 and started to rebound — but experienced traders know that parallel bottoms and tops are often used to be broken, a common trap set by the main players. So, it’s very likely that the 70000 level won’t hold up later.

So, what will happen today? First, let’s clarify that 73700 is basically the top of this rebound wave. Don’t expect 76000 or 78000 anytime soon; short-term, that’s unlikely. Because the upward structure on the 1-hour and 4-hour charts has already broken, creating lower lows, which signals a trend reversal to downtrend. However, it hasn’t yet formed lower highs, and I think it’s very possible it will today.

Simply put, during the day, it might first rebound to fill the daily gap around 72400, then continue to fall, breaking the parallel bottom at 70000, making the downtrend clear. That’s roughly how the script is written.

Of course, this is just my personal opinion; how the market moves depends on how unreliable the K-line drawing is!

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