The Bitcoin market has recently shown typical characteristics of an early stage trend. From the perspective of wave theory, we are currently in the first wave phase. After experiencing a decline to 3680, the market has shown signs of stabilizing and has begun to rebound.

The characteristic of this stage is that the price fluctuations are relatively mild. Both bullish and bearish investors are cautiously probing the market, leading to a moderate increase in trading volume. This phenomenon reflects the hesitant attitude of market participants in the early stage.

It is worth noting that the upward and downward trends exhibit different characteristics in the initial stages. The early stage of an upward trend typically shows smaller fluctuations, while the early stage of a downward trend is often accompanied by significant price changes and a notable increase in trading volume. This difference makes the initial phase of a downward trend easier to identify.

For traders, understanding these market dynamics is crucial. In the early stages of an uptrend, it may be wiser to remain vigilant and look for solid entry points. In contrast, during the early stages of a downtrend, quick responses and risk management become particularly important.

As the market gradually evolves from the first wave to subsequent stages, we may see more pronounced trends forming. Continuing to pay attention to changes in trading volume and price movements will help investors better grasp the market rhythm and develop appropriate trading strategies.