Bitcoin's current rapid decline dropped 2,000 points sharply, successfully harvesting short positions. Will it continue to weaken later? Below is a complete analysis of the market logic and trading strategies.

1. This short-term plunge is just a prelude to a deep correction. Many technical indicators for Bitcoin have already reached high levels. Before this attempt to break previous highs, it failed to surge and instead dropped rapidly, clearly indicating that the main force is inducing a false breakout to trap longs, with signs of a top forming. The correction phase has already begun.
2. On the macro level, Bitcoin has been rising for nearly a month, with a total increase of close to 25%. There is a strong technical correction demand. Currently, the upward trend line is at risk. If it is effectively broken below support, the downward pace will accelerate, and the correction space will further expand.
3. The only support for the bulls at the moment is the positive expectation of a ceasefire between the US and Iran. But it must be clear that this ongoing rally has already been pre-baked and priced in that good news. Once the news is officially confirmed, it’s very likely that the positive momentum will be exhausted, a market phenomenon often called “buy the rumor, sell the fact,” leading to a sharp pullback.
4. In terms of practical strategy, it is currently suitable to go short on rallies. Set up short positions near the previous high of 79k points, and also add short orders at the key resistance level of 81k points above. This way, even if there is a short-term slight rebound, you can also prepare for early defense. Even if the overall bull market remains unchanged, a significant short-term rally will inevitably be followed by a retracement and correction.
5. Grasp the market rhythm to ensure steady profits. Previously, I had already suggested setting up short positions around 79k points, and simultaneously placed large short orders, successfully capturing the downside profit overnight. Market opportunities always favor those who are prepared. Whether for long-term positioning or short-term trading, following the rhythm and making rational arrangements are essential to continuously profit from the market.