Market Simulation

The 12-hour indicator has diverged, and the daily RSI has not.

The 3/5 day KDJ has bottomed out in divergence, but the RSI does not show this. What is the situation? The selling pressure has diminished, and the buying has not come in.

Since the decline lacks strength for now, and there is no incoming capital, the ideal scenario for those wanting to cut losses at high positions is a low-level fluctuation, continuously testing previous lows, or perhaps even making slightly new lows.

We should wait for the market to react. Last night until dawn, there was a liquidation of 2.7 billion USD. With strategies like this, there must have been deep losses. What will these institutions do? Wait for a rebound? Probably won't bottom-fish anymore.

In the spot market, one can test entering at previous lows, with the worst-case being a short-term loss. A rebound is only a matter of time. The contracts are indeed difficult to operate, so it's better to wait for the rebound to show divergence at the top, and only enter with a light position. Consider large positions only after two or three consecutive top divergences on the 12-hour chart.

Conclusion: Fluctuations may last one or two weeks, remaining below 6.8, accompanied by multiple tests of the 6 level @币安广场 .