Bitcoin had another round of "late-night pump," but don’t just get excited watching the candlestick charts shoot up. If you were closely monitoring the market, you’d have noticed that yesterday’s big green candle wasn’t actually backed by much trading volume.

Why did this happen? Two reasons:

First, there was a chain reaction of liquidations on the futures side. Leveraged longs got force-closed, which pushed the price up. This kind of rally is mainly driven by futures.

Second, Monday’s drop was too steep, and the past few weeks have been a one-sided downtrend, so there are very few sell orders above. In this kind of sell-side vacuum, even a small amount of buying can push the price up quickly.

So what should you do now? Go long or short?

Don’t rush into a position. You still need to watch the market at this level.

One scenario: If BTC can break through 93,880 and even hold above 94,000, then the rebound can be considered confirmed. Because in this range, even if it pulls back 2%, it’s still above the previous high of over 92,000. If BTC continues to suck up liquidity and rally while altcoins can’t keep up, you can basically judge that this is a medium-term daily-level rebound. The target would be 99,000 to 100,000.

Another scenario: If it can’t break through this key resistance area, I’m more inclined to expect a sideways trend. Looking at the weekly chart, BTC has been dropping for more than a month. Historically, after a one-sided trend like this, the market usually needs some time to consolidate and go sideways before choosing a new direction. At that time, it’s better to focus on small cap coins that are moving chaotically, whether they’re surging or crashing.

The market has been quiet lately, and even those signal callers on Twitter have gone quiet, so I can actually concentrate on watching the charts.

For example, with today’s rally, on December 2nd the price quickly bounced back after dipping to 84,000, forming a clear inverse head and shoulders pattern. So as soon as the price recovered, I closed my short positions to wait and see. Same with the short near 91,000—the timing was very precise.

Don’t get swayed by outside voices; always watch what the market is actually doing. You need to have your own trading logic.