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It's moving in a rather unusual pattern.![]()
I’m still feeling pretty uneasy about it 🫤
Well, as for fundamentals, the 48 hours of war can be considered noise for now; what I’m more interested in is how the FOMC minutes and other indicators will turn out.
It's moving in a rather unusual pattern.
I’m still feeling pretty uneasy about it 🫤
Well, as for fundamentals, the 48 hours of war can be considered noise for now; what I’m more interested in is how the FOMC minutes and other indicators will turn out.
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$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$
“By observing the overall trading and trends in the stock market, we can see that nearly all insights regarding the past, present, and future available on Wall Street are already factored in. There is absolutely no need to eagerly gather and add commodity indices, bank settlement amounts, market volatility, or trading volumes from domestic and international markets to the market average like some statistical analysts do. This is because Wall Street already knows all this information.”
This is a concise expression of the first law of Dow Inc theory, 'The market discounts everything.' It is also a concept that resonates with Adam Smith's 'invisible hand of God.'
If this law were entirely correct, technical analysis alone would be sufficient to interpret the market, and there would be no issues with trading. However, is the market really 'always an efficient and correct entity'?
My answer is NO. So what exactly is going on? This time, let's explore the reasons together using both theory and real-world examples.
1 Chart moves efficiently
First, previously...
$XAG/USD (XAGUSD.FX)$
$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$
“By observing the overall trading and trends in the stock market, we can see that nearly all insights regarding the past, present, and future available on Wall Street are already factored in. There is absolutely no need to eagerly gather and add commodity indices, bank settlement amounts, market volatility, or trading volumes from domestic and international markets to the market average like some statistical analysts do. This is because Wall Street already knows all this information.”
This is a concise expression of the first law of Dow Inc theory, 'The market discounts everything.' It is also a concept that resonates with Adam Smith's 'invisible hand of God.'
If this law were entirely correct, technical analysis alone would be sufficient to interpret the market, and there would be no issues with trading. However, is the market really 'always an efficient and correct entity'?
My answer is NO. So what exactly is going on? This time, let's explore the reasons together using both theory and real-world examples.
1 Chart moves efficiently
First, previously...
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![[Column ② Dow Inc Theory First Law] Is the market really an efficient creature that factors in everything?](https://sgsnsimg.moomoo.com/sns_client_feed/181457907/20260405/fb031f2d8d7a34009a9292521ed51e3b.jpg?area=105&is_public=true)
![[Column ② Dow Inc Theory First Law] Is the market really an efficient creature that factors in everything?](https://sgsnsimg.moomoo.com/sns_client_feed/181457907/20260405/9c1b5de923f9af599100abfdefcbe081.jpg?area=105&is_public=true)
![[Column ② Dow Inc Theory First Law] Is the market really an efficient creature that factors in everything?](https://sgsnsimg.moomoo.com/sns_client_feed/181457907/20260405/d9b9e808df812ce36a409ead64e413e2.jpg?area=105&is_public=true)
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What's important is to always account for both upward and downward price movements, and to establish forecasts with the assumption that your predictions may be wrong.![]()
What's important is to always account for both upward and downward price movements, and to establish forecasts with the assumption that your predictions may be wrong.
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I think the money will come here because there’s nowhere else for it to go. At least, that’s what I believe.
I think the money will come here because there’s nowhere else for it to go. At least, that’s what I believe.
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Hello, everyone! 💃
Today, I’ll analyze what I couldn’t get to last week~
By the way, I'll be going a bit faster than usual today, so feel free to ask if you have any questions at any time
[Chart Analysis]
・Chart Pattern
A rising channel has formed following the drop from near $60,000. Despite some fluctuations, it continues to rise steadily. Key resistance levels to watch are around $76,000 to $78,000. It’s expected to rise firmly up to that point. Even if it were to fall back to the lower limit of the channel, it would still align with Fibonacci retracement levels of 50-61.8%, making it an excellent dip-buying opportunity.
If we maintain an upward bias, waves 2-3 of the impulse could form, and the target would likely be around $80,000.
In the case of a downward view, a correction to wave c might allow for a drop to as low as $64,884.
・Trading Volume
The increase in trading volume since the drop from $60,000 indicates active buying and selling. However, considering the rise from $65,000 to now, the volume seems somewhat lacking relative to the upward movement. A divergence is also being considered.
- MACD
Both long-term and short-term trends remain on an upward trajectory. No dead cross is expected even when viewed from a medium-term perspective.
- Ichimoku Cloud
「...
Hello, everyone! 💃
Today, I’ll analyze what I couldn’t get to last week~
By the way, I'll be going a bit faster than usual today, so feel free to ask if you have any questions at any time
[Chart Analysis]
・Chart Pattern
A rising channel has formed following the drop from near $60,000. Despite some fluctuations, it continues to rise steadily. Key resistance levels to watch are around $76,000 to $78,000. It’s expected to rise firmly up to that point. Even if it were to fall back to the lower limit of the channel, it would still align with Fibonacci retracement levels of 50-61.8%, making it an excellent dip-buying opportunity.
If we maintain an upward bias, waves 2-3 of the impulse could form, and the target would likely be around $80,000.
In the case of a downward view, a correction to wave c might allow for a drop to as low as $64,884.
・Trading Volume
The increase in trading volume since the drop from $60,000 indicates active buying and selling. However, considering the rise from $65,000 to now, the volume seems somewhat lacking relative to the upward movement. A divergence is also being considered.
- MACD
Both long-term and short-term trends remain on an upward trajectory. No dead cross is expected even when viewed from a medium-term perspective.
- Ichimoku Cloud
「...
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By the way, you can see from the previous cycle ❤️
Also, I highly recommend analyzing why this moved the way it did. Just in case, since there are some people out there irresponsibly claiming this is a market crash.
By the way, you can see from the previous cycle ❤️
Also, I highly recommend analyzing why this moved the way it did. Just in case, since there are some people out there irresponsibly claiming this is a market crash.
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If solid resistance or support doesn't hold around $77,789 to $82,484 here, you should be prepared for the possibility of a drop below $50,000 next.
If solid resistance or support doesn't hold around $77,789 to $82,484 here, you should be prepared for the possibility of a drop below $50,000 next.
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Isn't investing something you do alone to make a profit?
Talking about buying or losing in the message board, it’s not like watching a sports game... 😅
Isn't investing something you do alone to make a profit?
Talking about buying or losing in the message board, it’s not like watching a sports game... 😅
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No problem as long as it holds at the green support line even if it drops. Hopefully, it will break through the cloud if it rises.
No problem as long as it holds at the green support line even if it drops. Hopefully, it will break through the cloud if it rises.
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