$BTC The low point has rebounded by more than 13% since then. The rhythm of this wave's rebound looks very smooth visually, and the profit effect is also very intuitive. Now everyone may be concerned about whether this is a rebound or a reversal?
In fact, we don't need to define it in such a way. We can look at it from a different perspective. When a trend of decline ends, the price has to go from 'falling' to 'real reversal', and it will go through several stages in between!
It can be roughly divided into four stages: first, a continuous decline → then starting to stabilize and rebound → next, a clear strong upward attack → finally entering a real trend.
This is also an essential stage. My level is usually just a rough sketch, and now the market's safety line is in the range of 88-90, while the upward line is around 94!
Or you can also look at the 21-day moving average yourself. If the K-line is obediently pressing down on the 21-day line, it can only be called a 'rebound'. No matter how strong the rebound is, it is classified as a corrective action within the decline cycle.
The real change comes from: the price simply does not go down anymore, but instead breaks through the 21-day line and needs to stabilize above it. Meanwhile, the 21-day line itself also starts to rise. Only then can we consider the market to have entered a 'strong recovery'.
So whether you bought in at the bottom earlier or are anxiously waiting now, you can use this as a reference suggestion point!