Will Bitcoin Break $70,000 in October? The "Jumping Dragon Strategy" Tells You the Answer!Recently, the price of Bitcoin has been steadily rising, sparking much discussion in the market. Many believe this is merely a rebound within the bear market and will ultimately decline
Will Bitcoin Break $70,000 in October? The "Jumping Dragon Strategy" Tells You the Answer!
Recently, the price of Bitcoin has been steadily rising, sparking much discussion in the market. Many believe this is merely a rebound within the bear market and will ultimately decline. However, by carefully observing the trend of Bitcoin over the past half year, we can see that this rise is not a simple rebound but a signal that a bull market is about to begin.
From "Downward Channel" to "Slightly Downward Inclined Parallel Channel": A Shift in Market Trend
Many view the Bitcoin price trend over the past half year as a downward channel, suggesting a future decline. However, the "Jumping Dragon Strategy" defines this period as a "slightly downward inclined parallel channel" and points out that the eventual breakout direction will be upward.
The difference lies in:
- Downward channel usually appears in bear markets, with rebound trades experiencing low volume and decline trades experiencing high volume, ultimately breaking out downwards.
- Slightly downward inclined parallel channel appears in bull markets, with short-selling trades experiencing low volume and long trades experiencing increased volume from low to high, ultimately breaking out upwards.
From the chart, we can see:
- Bitcoin prices have shown a clear change recently. Before August 5th, the highs and lows did indeed decrease, but the decline was slight, completely different from the trend of progressively lowering highs and lows in a bear market.
- After August 5th, Bitcoin prices started to break through previous highs, and the lows stopped making new lows, instead gradually rising. This indicates that the volatile period is coming to an end, and prices are about to break out upwards.
Confirmation from MACD indicators:
MACD, as a moving average oscillator, has a certain degree of lag and cannot be used as the primary trading basis, but only as an auxiliary judgment.
- Currently, MACD is close to the zero axis and about to cross over, creating a golden cross.
- In the early stages of a bull market, MACD may fall below the zero axis, but after entering the mid-stage of a bull market, MACD usually doesn't fall below the zero axis.
Seize the opportunity of the bull market and plan ahead:
Learning trading techniques is not about predicting the market, but rather using chart trends to identify future trends in advance and take early action. The competition among professionals lies in who can spot opportunities first, granting them an advantage.
My trading skills all come from learning at Sancai. Before learning systematic trading techniques, I was like most novice traders, suffering significant losses. It wasn't until I systematically learned the "Jumping Dragon Strategy" that I gradually understood bull and bear markets, trend judgment, identifying tops and bottoms, and other trading techniques, significantly improving my trading skills.
It is important to note that the above analysis is solely my personal opinion and does not constitute investment advice.
I hope this article helps you understand the Bitcoin market trend better and make wise investment decisions!
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