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Yesterday, my short positions were thoroughly taught a lesson. The 600-point stop-loss was wiped out in an instant, but at that moment I became even more certain—that this rally is real.
First, let's talk about the key data. After Bitcoin built up momentum around 91,000, it directly broke out of the two-month consolidation range. The 95,000 level was easily surpassed, and then it surged all the way to 96,800. The most interesting part is the 94,500-94,700 level, which had been tested multiple times before without breaking through, but this time it was taken out effortlessly, with no signs of a pullback.
Why is this breakout worth paying special attention to? Volume is the first signal. This isn't a false breakout caused by shrinking volume testing; it's driven by genuine trading volume pushing the price up. A combination of rising volume and price is the true sign of a breakout; a rise without volume can't withstand scrutiny. To put it simply, it's like military combat—main forces carrying sufficient supplies and firepower charging forward, versus scattered troops running around aimlessly—completely different concepts.
The chart pattern is also crucial. The two-month consolidation period is like a compressed spring. Once released, the energy can break through previously tested resistance levels. The 94,500-94,700 zone, which was once a "roadblock," has now become a thing of the past. This reflects a fundamental shift in market sentiment—from hesitation to aggressive buying. This change didn't happen overnight but was gradually confirmed with the help of volume.
Forget about the painful lessons from the previous counter-trend moves. The key is to recognize the signals of a trend reversal. When the pattern, volume, and sentiment all align in the same direction, it's usually time to adjust your strategy.