The early morning pullback of 3,300 points from $73,800 to $70,500, while appearing aggressive on the surface, looks more like a normal profit-taking correction following a breakout of historical highs from a technical structure perspective, rather than a trend reversal. The current price is stable around $70,900, which is a very positive signal indicating that market absorption remains strong.
From key levels, the $70,500-$70,900 zone is a critical area where previous resistance has converted to support. After testing the morning low of $70,500, a quick rebound followed, validating the support strength of this zone. As long as price holds above the $70,000 psychological level, the short-term uptrend structure remains intact. From the 4-hour timeframe, this "higher highs, higher lows" pattern, combined with volume that did not expand on the decline and instead showed volume contraction and stabilization at low levels, represents a typical bull market correction structure, indicating good chip lock-in with no panic selling.
Focus on the $71,200-$71,500 recovery level in the near term. If the hourly line can stabilize above this zone again, it signals the correction is complete and offers potential for another attack on the previous highs of $73,200-$73,800. The support level below is set at $70,000-$70,500. As long as it doesn't break effectively, the overall trend remains bullish with no need to abandon bullish conviction due to a one-sided 3,300-point decline.
The early morning pullback of 3,300 points from $73,800 to $70,500, while appearing aggressive on the surface, looks more like a normal profit-taking correction following a breakout of historical highs from a technical structure perspective, rather than a trend reversal. The current price is stable around $70,900, which is a very positive signal indicating that market absorption remains strong.
From key levels, the $70,500-$70,900 zone is a critical area where previous resistance has converted to support. After testing the morning low of $70,500, a quick rebound followed, validating the support strength of this zone. As long as price holds above the $70,000 psychological level, the short-term uptrend structure remains intact. From the 4-hour timeframe, this "higher highs, higher lows" pattern, combined with volume that did not expand on the decline and instead showed volume contraction and stabilization at low levels, represents a typical bull market correction structure, indicating good chip lock-in with no panic selling.
Focus on the $71,200-$71,500 recovery level in the near term. If the hourly line can stabilize above this zone again, it signals the correction is complete and offers potential for another attack on the previous highs of $73,200-$73,800. The support level below is set at $70,000-$70,500. As long as it doesn't break effectively, the overall trend remains bullish with no need to abandon bullish conviction due to a one-sided 3,300-point decline.