Last night, the big coin indeed experienced a downward departure for about 1 hour, which is consistent with our expectations over the past few days. Currently, it has entered a bearish divergence phase, but even if the divergence is confirmed, there is still a possibility of only a rebound. At this point, we cannot just focus on the small timeframe and need to consider the outlook for the trend by combining the larger timeframe's pattern.

First, let's look at the daily timeframe:

The overall trend on the daily timeframe remains bearish. Caution is advised for going long on the small timeframe. (Short-term operations are not under discussion)

4-hour timeframe:

The 4-hour downward segment has broken the new low, indicating that the sub-timeframe has entered a divergence phase. However, entering a divergence phase does not mean an immediate reversal; patience is needed to wait for the end of the sub-timeframe trend.

1-hour timeframe:

Although the 1-hour timeframe has clearly entered a divergence phase, considering the larger timeframe trend, it is still possible for the current situation to continue to oscillate and then break through downwards. At this point, the daily timeframe may have already shown several alternating red and green bars, thus forming a relatively secure buying point.

Before a relatively secure buying point appears for the big coin, do not rush to bottom fish for altcoins, as mentioned in previous articles in the past few days. It is necessary to wait for the big coin to stabilize before considering bottom fishing for well-formed altcoins.

Brief terminology explanation:

Timeframe: A unique concept in the "Chen's Theory," representing the market in two dimensions of time and space. The larger the timeframe, the longer the time and the greater the fluctuation space, generally including 4-hour timeframe, 1-hour timeframe, 30-minute timeframe, etc.

Trend type: Divided into consolidation and trend, with rising and falling trends; each timeframe has corresponding trend types.

Segment: The trend type of the sub-timeframe, "a segment of a certain timeframe" specifically refers to a segment.

Divergence: Refers to the end of an upward or downward trend, where the price reaches a new high/low, but the momentum clearly weakens. It is usually judged with the assistance of MACD.

The views in the article are for learning and reference only and do not constitute investment advice.

If there are friends who want to operate together, seize the opportunity of the bull market to capture the big coin and high-quality altcoins, you can add my WeChat (vhenrythu) for consultation and learning exchange!

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