The "Three Advances, Four Breaks" refers to the stock market phenomenon where when the stock price reaches a resistance level, a pullback usually occurs. This situation may occur three times in a row, and when it encounters the same resistance level for the fourth time, the stock price often breaks through. This phenomenon can be explained from a market psychology perspective, as investors may develop an inertia mindset after three consecutive attempts in a price range, believing that the stock price will peak in that area. However, on the fourth attempt, market sentiment may reverse, leading to a breakthrough in the stock price. Similarly, in the cryptocurrency market, when the coin price encounters a support level during a downtrend, a rebound usually occurs. This situation may also occur three times in a row, and when it encounters the same support level for the fourth time, the coin price often breaks through. This is the meaning of "Three Advances, Four Breaks"!
The current trend of Bitcoin and Ethereum is in this stage, as shown in the following chart:
The current market trend also belongs to the bull market retracement stage. Although Bitcoin has tested the 60,000 level several times, the price breakthroughs have been ineffective, only appearing as pin bars on the daily chart. This attempt is the fourth one, according to the "Three Advances, Four Breaks" law. Personally, I think it is still worth trying. Therefore, the recommended subsequent operation is to focus on aggressive short positions, and high-level short positions can be held for further decline!
Operation suggestions:
Short Bitcoin in the 61,500-62,000 range, with a target of 60,000-59,000 and a defensive position at 62,500!
Short Ethereum in the 3,030-3,050 range, with a target of 2,950-2,900 and a defensive position at 3,100!
The strategy is time-sensitive, and specific guidance should be followed in real time.
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