Beware of the trap of short-term rebounds in BEAT

Looking at the 1-hour K-line, BEAT indeed shows signs of a rebound, and many are eager to buy the dip. However, zooming out reveals the problem— the 4-hour and daily timeframes still maintain a strong bearish pattern. Such a rebound is merely a technical correction within a downtrend and not a sign of trend reversal.

This is a common pattern in the market. Retail traders see a short-term rebound and think an opportunity has arrived, only to get caught when they enter. Bears induce buying at high levels, using psychological expectations to create false breakouts, but ultimately the price falls back.

From a technical perspective, divergence across multiple timeframes is crucial. When a short-term rebound occurs but the medium- and long-term trend remains unchanged, it often indicates limited upside. At this point, blindly buying the dip carries more risk than reward. Genuine trading opportunities require waiting for clearer signals—such as confirmation of support on the daily chart or a significant decline in bearish momentum.

Market rhythm is in the hands of patient traders. For now, it’s better to observe BEAT’s rebound and give the market more time to confirm the direction. Rushing in often only provides liquidity for others.