Morning Trend | BITF Three Consecutive Gains Approaching Highs, Is It a Main Uptrend or a Short-term Trap?
Bitfarms Canada (BITF.US) has recently experienced three consecutive days of gains, with rapid capital rotation igniting short-term sentiment. The concept of distributed Bitcoin mining has been fueled by successive capital inflows, resulting in multiple small bullish candles and increased buying volume throughout the day. The community's FOMO discussion atmosphere is high, with "Is the main upward wave coming soon?" becoming a hot topic.
From a technical perspective, BITF has successfully broken through key moving averages, with bullish positions showing profits. The previously suppressed overhead resistance is gradually being digested, as the main force repeatedly challenges previous highs through increased volume. Once the overall sentiment in the sector aligns and becomes exuberant, the main force may push further.
There are currently no significant negative news, and some institutions are subtly releasing positive signals by increasing their holdings. However, caution is warranted, as the short-term profit-taking after consecutive gains may face strong selling pressure. If BTC experiences increased volatility, the main force's reversal could lead to panic selling.
Key points to watch are changes in trading volume; only sustained increases in volume indicate a true upward trend, otherwise, the risk of a false breakout and subsequent washout should not be overlooked.
Strategy recommendation: The bullish atmosphere around BITF is currently strong, and high-risk tolerant investors may consider following the volume. Conservative investors should wait for a confirmation after a pullback before re-entering. It is advisable to set stop-loss orders before chasing higher prices to guard against risks from sentiment reversals
Technical Forecast·
