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Recently, Bitcoin has entered a critical daily shorting zone—$95,000 to $104,000. Frankly, this is most likely a trap set by the bulls.
Why do I say that? Looking at the weekly chart, Bitcoin is forming a head and shoulders pattern. I mentioned this position before, and now that it has returned here, the bears will start to doubt themselves, while the bulls can’t help but shout that the bull market is back. But this is the key—market liquidity is extremely scarce, and the bear market’s curtain has just begun.
This current rebound is actually a wave B on the weekly level. For investors caught in positions, this is the last chance to escape. For bearish traders, this is also an ideal opportunity to add to short positions in batches. The rebound cycle might last quite a while, and a significant decline is expected around March.
My personal plan is simple: to initiate a prolonged short battle. I won’t bottom-fish in the short term; I’ll wait for the rebound to fully release bullish sentiment, then observe the true trend direction. At the current pace, the bear market is far from over.