Bitcoin is currently still oscillating within the larger oscillation area (between the two yellow lines in the chart), but overall, the bearish strength is starting to weaken and the bullish strength is beginning to strengthen. It has once again approached the upper edge of the oscillation area near the yellow line resistance level and is starting to pull back.
First, we need to see whether this pullback is accumulating strength for a breakout or if it will continue to decline. This requires careful analysis of the market.
1. Looking at the overall volume, the bearish volume is starting to weaken, while the bullish strength is beginning to increase. After the pullback stopped at the $91,000 position, this wave of rising has been very healthy. Although it has encountered resistance, the current short-term trend still belongs to the bullish trend without change.
2. In this wave of rising marked by the red arrow, it can be seen that the bulls are increasing their volume during the rise, while the bears are decreasing their volume during the pullback. This is also a sign of strong bullish momentum. The last two four-hour candlesticks are small candlesticks with lower shadows, and the dense trading area formed by the two white lines below provides strong support.
3. From the current trend, although there is a pullback when encountering the upper resistance level, the strength of this pullback will not be too great. The pullback is just to accumulate strength for a better push against the upper resistance level.
The entire large oscillation area has been oscillating for 15 days, which is already quite long. Furthermore, through the analysis of the bullish and bearish forces in the oscillation area, it can be seen that the bulls are stronger than the bears, so this pullback will not be too large.
At this position, shorting requires caution. I will wait until the pullback is over before entering to go long; I will not take the risk to short.
The market changes quickly in a four-hour timeframe. For short-term trading, it's important to take profits when they're available. Don't let greed trap you. Short-term trading emphasizes the utilization of capital, so be willing to take profits and be brave enough to cut losses; otherwise, you lose the meaning of short-term trading.