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Today's crypto market resembles a wanderer lingering at a crossroads, with a sense of "entanglement" in its trend. A moment's inattention may lead to missing key turning signals. From the moving average system, which serves as the "market weather vane," the current scene is not optimistic. Both short-term and long-term moving averages are tilted downward, forming a standard short positions arrangement, as if there are downward slides, indicating that the market's downward inertia is still present. More notably, prices are firmly standing below all moving averages, as if suppressed by an invisible force, making it difficult to lift its head. This series of signals undoubtedly clearly indicates that the overall trend of the current market remains weak, the previous adjustment phase has not yet ended, and market sentiment has not fully warmed up from its sluggish state.
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However, against this bearish backdrop, the emergence of a bullish engulfing signal in the large-scale candlestick patterns of Bitcoin and Ethereum is like throwing a stone into a calm lake, injecting some vitality into the short-term trend. The formation of this signal indicates that buying power may be quietly accumulating in the short term, attempting to reverse the current downward trend, and there is a certain opportunity for a rebound. This is undoubtedly a positive signal worth paying attention to. However, this positive signal creates a small contradiction with the bearish trend conveyed by the moving average system. On one side is the weak guidance of the long-term trend, and on the other side is the possibility of a short-term rebound, which adds some space for consideration in market operations. Should one follow the long-term trend and continue to watch, or seize the short-term signal to attempt positioning?
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To delve deeper into the intricacies, exploring potential trading opportunities and risk points, pay attention to the Yibo evening live broadcast room. Together, we will sort out the market context and interpret various signals, providing more references for your investment decisions.