$BTC has bounced back from 12-hour oversold conditions, but mid-term trend prospects remain uncertain, warranting caution. A new low may form, indicating a bottom divergence, but confirmation requires exhaustion of long volume to short and clear trend reversal signals, such as a higher low or bullish crossover.
Previously, long positions near $58,000 successfully targeted $59,100, with a profit-taking target at the top of the band. However, risk exists in placing long orders currently, given uncertain trend direction and potential for further downside.
Key levels to watch include support at $57,500 (primary) and $56,000 (strong), and resistance at $59,100 (top of the band) and $60,500 (major).
Await confirmation of trend reversal or further clarification of market direction before re-entering long positions. Consider scaling in gradually, setting tight stop-losses, and diversifying your portfolio. Stay vigilant and adjust strategies accordingly.
