BTC long-short ratio reaches a new historical high and the general direction may continue to adjust

BTC fell below the key support of $9,700 at the neckline below the daily M-head last night and then experienced an accelerated decline. Yesterday, we pointed out that if BTC cannot stand above $10,500 in 4 hours, it may continue to test the neckline support and may break directly. Last night, BTC first fell sharply from above $10,500 to around $10,000, and after a brief pullback, it fell again and directly broke the neckline support. The double top pattern at the daily level was established. According to the M-head equal ratio decline theory, BTC may fall back to around $7,500 in the future. This is the callback target position of the pattern theory. We must also pay attention to market news and policy changes in the future.

The technical chart trend also shows that BTC ended its long-term sideways trading at the bottom and broke through the upper horizontal resistance zone with large volume, bidding farewell to the bear market and ushering in a 19-year bull market. During this period, the currency price continued to rise relying on 3 upward trend lines. At present, BTC has broken the support of the 3rd and 2nd accelerated upward trend lines, and has successively broken through the 50-day and 60-day support lines. The market trend is weak. The lower support is the arc bottom neckline at the previous stage at $9,000. The daily MACD is in a high-level dead cross trend, and the RSI is suppressed by the downward trend line. In addition, the BTC long-short ratio is as high as 4.0, which is in a serious overbought area. Therefore, the general trend direction will continue to adjust. The short-term decline is too large and panic trading has emerged. The currency price has a need to pull back and rebound in the near future. The first rebound target is $9,700, and the next target is $10,000.