After wandering in circles, the price has once again returned to around the 70,000 level!

Although the daily chart has shown an 8-day consecutive bullish pattern, I have been emphasizing that this type of continuous rally has significant flaws: first, the gains are not enough; second, these consecutive bullish candles in a weak market are not indicative of a strong bull trend. In a weak bear market, they can only be considered a rebound!

I am also very concerned about the appearance of reversal signals, especially when positive K-lines are interrupted and turn negative. In fact, over the past month, this pattern has been consistent: whenever a series of bullish candles is followed by a negative K-line, the trend gets disrupted—it's not a "bull trap" as you might think, nor is it the momentum for another sharp surge. Historical evidence shows that in a weak market, the end of a rebound and the cessation of bullish K-lines will often lead to a continued decline. We can believe it won't break the recent lows, but you must accept the oscillation in a weak market. This is the pattern and the iron law of Lao Xiao's technical analysis!

Yesterday's decline has wiped out about 5,000 points of gains over the past two days, and the daily chart has formed a pattern of consecutive negative candles. Regarding the next move, Lao Xiao believes that the probability of consolidation is higher. Even if there is a breakdown, it is unlikely to happen this week. The first reason is that the previous series of bullish candles included many doji or small bullish K-lines, indicating that when the price returns, it will undergo a second correction, likely around the 70,000 level!

Yesterday's daily trend was quite weak. After breaking through 73,000 automatically, the bulls showed almost no counterattack strength. In the early morning, it only reached 72,000 before coming under pressure again. Today’s main theme allows participation from both bulls and bears. The primary outlook is bearish: this morning’s highest rebound was at 71,500, then it turned downward. If there is another rebound later, I expect this level will be broken. For a more cautious approach, Lao Xiao suggests that reaching around 73,000 could signal a move downward, using this level as both a daily resistance and a previous point of consecutive bullish candles, making a top-bottom reversal feasible. Opportunities may be scarce, but they will come!

As for the upward targets, they are easier to identify: focus on the resistance levels that have been tested and broken multiple times previously, especially the key acceleration zone after a breakout. That’s right, the 68,500–69,000 area. I believe your expectations are aligned with mine. So, without further ado, let’s wait for the right opportunity to jump in!