BTC rebounded from a low of 38500 to 43882, but was resisted and fell back into a oscillating pattern. The price of BTC dropped by over 10000 points from its high near 49000, then rebounded from 38555 to 43882, recovering half of the previous decline.

Is it a rebound or a reversal? This account believes, consistent with previous analysis, that it is just a rebound before a larger-scale decline. In simpler terms, it's another trap to lure in many market participants who believe the market is about to reverse and chase higher, only to be violently struck down again.

Based on the analysis and deduction of future trends according to the structure of the "Chen's Theory," it often contradicts the expectations and perceptions of most people in the market, which corresponds to the "Pareto Principle" in the trading market. In other words, the truth is always held by a minority!

First, let's take a look at the daily chart. In the chart, it can be seen that after the internal three-stage divergence within the upward segment, there was a volume-driven decline, and the MACD fell below the zero axis, which is the biggest sign of the market's weakening reversal. Currently, the yellow and white lines are pulling back to the zero axis. Once the pullback to the zero axis is in place, the shortening of the green bars means that the next round of pullback is about to begin. In other words, once the top distribution of the daily chart appears, it will probably initiate the third downward segment of the daily chart.

Combined with the observation of the 4-hour chart, the 4-hour MACD is still high above the zero axis. After waiting for the pullback to the zero axis, there will be another upward rebound, corresponding to the completion of the secondary level pen center structure and the upward departure of the pen. Once the three-stage divergence of the pen center appears, there will probably be a 4-hour sell signal. And to confirm the 4-hour sell signal, at least a secondary level 30-minute sell signal is needed, which means a short opportunity on the right side.

With multiple levels intertwined, the trend becomes clear and simple!

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