Market Trends

The phenomenon of each retracement after breaking through the previous high during the rise of $BTC becomes smaller and smaller. The blue horizontal line marks the position of the previous high, reflecting a typical strengthening process of a main upward trend. Each breakthrough of the previous high attracts more buying interest, and the retracement space becomes smaller and smaller, which is the collective game result of enhanced bullish confidence and the failure of bears.

The core logic reflected in the trend shown in the image
The structure shows a clear "breakout-consolidation-rebreakout" pattern with increasingly shallow pullbacks, which has several core implications:

1. Bullish control strengthens, with the main force actively controlling the pace.
In the early stages (as shown in the first half of 2023), each breakthrough was accompanied by a significant pullback, indicating that the market still had "doubt and hesitation";

In the later stage (end of 2024 to early 2025), the magnitude of the pullback becomes smaller, and the price "breaks high and stabilizes," indicating that the main force has taken control, and the pullback becomes a buying zone;

The pullback below the blue line is becoming more "superficial", not a deep adjustment, but rather a structural consolidation.

2. Short selling is completely suppressed, and the bullish sentiment is strengthening.
Short sellers no longer dare to press down, which also means: short stop losses are frequent; leveraged short positions are quickly cleared; the downward space is constantly being devoured by active capital buying.

The trend is accelerating, and the market has formed a clear "new high = signal" logic.

3. The trading structure has entered the "inertia buying + FOMO buying" phase.

Every time it breaks through a previous high, it attracts new funds to chase the rise (inertia + FOMO), causing the price to "only rise and not drop";

A shallower pullback indicates that the market is no longer waiting for a "good price," fearing to miss out.

Especially during this period in July, the pullback is very small (only a spike), indicating extreme strength.

4. From the perspective of wave theory - Typical characteristics of the main upward wave (Wave 5)

According to Elliott Wave:
In the early stages, it may be 1 wave (breaking through the first platform);
Subsequent pullbacks may be adjustments of 2-4-6 waves.
Currently, it may be in the later stage of the main uptrend (Wave 5);

A shallower pullback indicates that the adjustment wave is getting weaker, and the main wave is dominating.

5. Sufficient turnover + liquidity accumulation in the upper structure
Every platform consolidation near the blue line has completed sufficient turnover;

After each new high, the main force uses the "rising above the previous high → attracting buying pressure" mechanism to digest floating shares.

The market liquidity is gradually rising, and the originally supported area has become the new "foundation platform."