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The Bitcoin market is experiencing constant fluctuations, leaving investors often confused: when can it be determined that the fall has stopped? A single green candlestick or a momentary rebound does not represent market safety. This article will analyze the true signals of a stop in decline in detail from three levels.
The basic signal is an initial market observation point:
1. A long lower shadow candlestick appears, suggesting that there may be buying support.
2. The price is no longer making new lows, indicating a certain level of support.
3. A significant increase in volume with a green K-line indicates that funds are starting to enter the market.
The advanced signals are more persuasive:
1. The price stabilizes above the MA7 or MA20 moving average line for at least two periods.
2. The trading volume significantly increases during the Rebound, surpassing the fall phase.
3. Form a clear candlestick reversal pattern, such as Morning Star or Engulfing pattern.
The highest level of strong confirmation signals include:
1. Short-term moving average golden cross, such as MA7 crossing above MA25.
2. The price structure has turned into a bullish pattern, with both highs and lows moving up simultaneously.
3. Technical indicators are synchronously strengthening, such as MACD golden cross or RSI breaking above the 50 level.
It is worth noting that these signals do not exist in isolation and need to be evaluated comprehensively. Investors should pay attention to the synergistic effects of multiple indicators rather than a single factor. At the same time, market sentiment and the macro environment are also important influencing factors that should not be overlooked.
When observing these signals, investors should also remain rational and avoid overinterpreting short-term fluctuations. Real market trend changes often require time accumulation and multiple confirmations. Therefore, when making investment decisions, one should carefully consider their own risk tolerance and investment goals.
Overall, the stop-loss signal in the Bitcoin market is a gradual process, from the basic level to the strong confirmation level, with each step requiring careful verification. Mastering these analytical tools can help investors better seize opportunities and avoid risks in the turbulent cryptocurrency market.