The trumpet pattern and pullback risk strategy under the Bitcoin short squeeze market

Core Logic and Analysis of the Air Force Short Squeeze

• Air Force fueling the rally: Short positions around 110,000 and continuous accumulation have become the "fuel" for bulls to push up. In the short squeeze market, when the Air Force despairingly turns bullish, it may trigger a pullback. The current 95% increase can be seen as a "contribution from the Air Force";

• Three-stage rally trap: The hourly rally presents a "hope turned to despair" short squeeze rhythm, with the final segment showing insufficient volume, which may be a false signal to lure bears in before rallying again, until the bears are "exterminated."

Key Level Trading Strategy

• Long Conditions:

1. Volume breakout at $118,259 → aggressive traders buy on the right side, target $118,401 → $119,014, stop-loss on breakout (volume must increase to avoid chasing high without sufficient volume);

2. Stand firm at $118,401 → look up to $120,047-$121,889, conservative investors can wait for a pullback confirmation before entering.

• Short selling conditions:

1. The volume breaks below 117858 USD → short on the right side to catch the pullback, target 117780 → 116472 USD, take back the stop loss (quick in and out, no pattern);

2. 4-hour level broke below 117780 dollars → lightly add to short positions, targeting 115165 dollars; if it breaks, the pullback will deepen.

Analysis of Shapes and Cycles

• Daily expansion trumpet pattern:

◦ The upward pin broke through the upper boundary, requiring tomorrow's 8 o'clock daily closing price to stabilize above it; otherwise, it will pull back inside the trumpet and enter a wide range of fluctuations.

◦ Horn shape characteristics: increased volatility, strong continuation after breakout, and pullback leads to an expanded fluctuation range.

• 4-hour pullback support:

◦ $115,165 is the key; if the pullback does not break it, it is considered "accumulation"; if it breaks, it will shake the bullish structure, and one must be cautious of a deep pullback.

Operational discipline and Friday risk reminder

• short squeeze market response:

◦ Bulls do not chase the end of the rally, can reduce positions by 50% near $120,000, keep positions for speculation but do not get attached to the battle;

◦ Shorts should avoid holding positions against the trend, do not easily open shorts above $118,000, wait for clear pullback signals (such as a volume drop below $117,780).

• Weekend Risk Control:

◦ Be cautious of "odd market trends" on Friday, keeping positions no more than 50%, and ensure sufficient stop-loss (long position reference at $117,780, short position reference at $119,014);

• Horn pattern confirmation:

◦ The daily closing price stabilizes at the upper edge of the trumpet → increase long positions, target 121,889 dollars; if it falls back inside → reduce positions and wait for the oscillation range to become clear.

Summary

The Bitcoin short squeeze market has entered a critical period, with the trumpet pattern and volume being the core. Core operation: Aggressive traders rely on breakouts to chase up but enter and exit quickly, while conservative traders wait for daily confirmations. Bears should never hold positions and should respond to weekend risks with a "take profit when it's good" strategy. Remember: behind the prosperity, there is always a pullback, and preserving profits is more important than betting on the top.