Before the market closes this Friday, investors generally expect the market to open lower next Monday. However, changes in the external markets have quickly altered this expectation, with some analysts even suggesting a potential breakthrough of the 4000-point mark. Let us delve into the details of the market data and discuss the key signals released by the market.



First, we need to understand whether Friday's bearish candlestick represents a 'violent market wash'. In an uptrend, the main methods of market washing are mainly divided into two categories: one is the 'small bearish and bullish wash' characterized by slight fluctuations and a significant decrease in trading volume; the other is the 'reverse wash' that creates panic by first pulling up and then smashing down at key resistance levels, usually accompanied by an increase in trading volume.

Observing the market data on Friday, the closing transaction volume increased by more than 70 billion compared to the intraday volume. Coupled with the characteristic of a significant drop in volume, this bearish candlestick tentatively aligns with the characteristics of a washout. However, we still need to conduct further verification in conjunction with technical patterns, especially by analyzing box fluctuations to determine market trend rules.

From the perspective of box pattern rules, the current market is within a large box range, which can be further subdivided into three smaller boxes. Regardless of the wash trading strategy employed by the main force, as long as the market maintains a fluctuating pattern, the K-line will form a box within a specific range, and the stock price will fluctuate back and forth between the support and resistance levels of the box.

It is worth noting that a key support line seems to have formed around the 3840 point. Signals of stabilization at this position have begun to appear, which may indicate that the market is about to undergo new changes. Investors should closely monitor the performance of this support level, as it could become an important reference point for judging the future market direction.

Overall, although Friday's bearish candle brought some uncertainty to the market, from the perspective of technical analysis and changes in trading volume, this may be a washout behavior by the main force at a key position. With the gradual establishment of support levels, the market may be preparing for a breakout. However, investors still need to remain vigilant, closely monitor market changes, and manage risks effectively.
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CryptoHistoryClassvip
· 8h ago
*checks historical data* same pattern as the 2018 bull trap... ngmi
Reply0
ChainSherlockGirlvip
· 8h ago
The market maker is playing the game of fishing for the moon this time, first scaring everyone down, then secretly pumping it up, the old trick again~
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BearMarketBrovip
· 8h ago
Washing is healthier!
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SelfRuggervip
· 8h ago
Be Played for Suckers again.
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Liquidated_Larryvip
· 8h ago
This wave is really at the top.
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TokenTaxonomistvip
· 8h ago
statistically speaking, this volatility pattern shows clear wash trading signatures smh
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