Recently, the Bitcoin market has shown a gradually expanding falling trend, from the hourly level to the 4-hour level, and then to the daily chart level. We see that the spot price has filled the previous gap around $112,000, while the futures price lightly touched the high point of May 22 at $111,900.

From the perspective of Elliott Wave Theory, analyzing the current market status, we can observe that the retracement from $93,000 to $123,000 has fallen below the 0.236 level at $116,000, and has stabilized around the 0.382 retracement level at $111,700. If a rebound can be confirmed, and it does not drop further to $108,100 or even $104,600, then the formation of the fifth wave still has a high probability.

However, investors need to remain vigilant. If the price falls below $104,600, we may need to consider the end of the five-wave pattern or enter a larger adjustment phase. However, as long as the price does not fall below the key support level of $98,000, the five-wave structure remains valid from a longer-term perspective.

This short-term volatility versus long-term trend game is one of the characteristics of the cryptocurrency market. Investors need to consider both short-term price dynamics and long-term market trends when formulating trading strategies in order to strike a balance between risk and opportunity.

It is worth noting that market analysis is for reference only, and actual trading should also consider other technical indicators and fundamental factors for cautious decision-making. The cryptocurrency market is highly volatile, and investors should always pay attention to market trends and manage risks appropriately.