Yesterday, Bitcoin was long in the range of 66300 to 66600, but then it hit the 66000 integer mark and fell below the rising trend line, triggering a trend reversal. This also reminds us again that we must develop the habit of taking a stop loss when chasing the rise to prevent similar situations from happening. Yesterday's daily K-line fell below the market for four consecutive days, and the lower supports of 65500 and 64300 were broken, and came to another key support above 63500. The overall trend has entered the box, and a flexible layout is needed to cope with market changes.
As of now, the current price of Bitcoin is around 64,200. Considering that yesterday's daily K-line may rise by 1,000 points after stepping back on the trend indicator EMA60, we expect that the intraday market may continue to step back on the 60 support point. In such a market situation, we recommend that the main layout of shorts is high, and long operations can be appropriately considered at low levels. Yesterday, the opening diffusion trend of the KDJ indicator changed and began to close inward; at the same time, the MACD indicator showed signs of shrinking volume, suggesting that the original trend reversal may continue to shrink and consolidate. Despite this, the DIF and DEA indicators are still in the closing stage. Combining the above factors, we believe that the current market is at a critical moment of the long-short contest. It is recommended to enter the downward channel after the short trend falls below the middle track of 66,500.
The impact of yesterday's beautiful market caused the four-hour K-line to open high and go low, and the long chips near 67000 were dense, which suffered a main force wash. Therefore, it is not uncommon for the four-hour K-line to fall below the EMA trend indicator. Usually, the market will quickly turn around and make up for the rise. The current KDJ indicator is blocked at 63500 and then begins to close, while MACD shows a shrinking volume and increasing chips. At the same time, DIF and DEA have just entered a polarized state. Due to the opening of the Bollinger Bands, we need time to sort out the space below. If the K-line steps back on the lower rail support of 64100 and breaks through it, there may be a pull-up phenomenon. On the upper side, we still pay attention to the situation near the 66000 mark. If it fails to break through, we can consider short operations. In the short term, there may be a wave of pullbacks after the stretch, but from the overall trend, the possibility of sideways trading at the bottom is greater.
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