Bitcoin (BTC) Analysis and Predictions:
Market Sentiment and Fundamentals • Market Sentiment: Bitcoin market sentiment is volatile, and a rapid price correction may cause panic in the market.
• Fundamentals: Bitcoin’s ETF inflows exceeded $5.4 billion in October 2024, showing growing market confidence in Bitcoin. Additionally, Bitcoin’s exchange balances are at historically low levels, indicating that holders prefer self-custody, which could also signal upside potential for prices.
Technical Analysis
• Daily chart: Bitcoin has a big black candlestick on the daily chart, engulfing the previous white candlestick, showing strong short-term downward momentum. The current price is around $96,000, and the next focus needs to be on the support of the 60-day line, which is around $93,000.
• Four-Hour Chart: From the four-hour chart, the price of Bitcoin has fallen below $96,000 and is currently hovering around $95,000, not yet stabilizing. It may continue to test the support level of $93,000 in the short term.
Trading Strategy and Risk Warning
• Short-Term Trading: Short-term traders can focus on the support level of $93,000; if the price falls below this level, it may decline further to $90,000. It is recommended to set stop-loss orders to control risk.
• Medium to Long-Term Holding: For medium to long-term holders, attention can be paid to the long-term trends and fundamental factors of Bitcoin. Although there is significant price volatility in the short term, Bitcoin still has potential for appreciation in the long run.
Resistance and Support Levels
• Resistance Levels: $97,500 and $98,800 are the current two resistance levels; the price needs to break through these levels to rise further.
• Support Levels: $95,500 and $92,800 are the current two support levels; if the price falls below these levels, it may decline further.
Please note that the cryptocurrency market carries a high degree of uncertainty and risk; investors should make decisions cautiously based on their own risk tolerance and investment goals.