1. Moving Average (MA)
- 7-period MA: Current price is below the 7-period MA, showing short-term selling pressure.
- 25-period MA: Price is also below the 25-period MA, reinforcing the short-term downtrend.
- 99-period MA: Price is below the 99-period MA, confirming the medium-term downtrend.
2. Bollinger Bands (BB)
- Upper and lower Bollinger bands: The price is fluctuating near the lower Bollinger band, indicating the possibility that the price may bounce back from this support area. If the price breaks below the lower Bollinger band, the downtrend may continue.
3. Relative Strength Index (RSI)
- RSI (14, SMA, 14): RSI is at about 35.19, near the oversold area (below 30). This could indicate the asset is oversold and there could be a short-term recovery.
4. Money Flow Index (MFI)
- MFI (14): MFI is at 31.63, also near the oversold area. This supports the possibility of a short-term recovery.
5. MACD (12, 26, close, 9)
- MACD: MACD line is below the signal line with negative histogram bars, indicating decreasing momentum. However, if the histogram bars start to shrink, it could be an early sign of a reversal.
6. Trading Volume
- Volume: Trading volume decreased, indicating that selling pressure may be weakening.
### Synthetic:
- Short-term trend: Currently, the short-term trend is down, but there are oversold signs on RSI and MFI, suggesting a possible rebound.
- Important support level: Lower Bollinger Band and nearby support levels, if price breaks below this level, the downtrend may continue.
- Important resistance levels: The 7-period MA and 25-period MA are resistance levels to pay attention to. A price break above these lines could be a signal for a bullish reversal.
### Trading strategies:
- Buy position (Long): Consider opening a buy position if there is a clear reversal signal, such as the price surpassing the 7-period MA or a reversal candlestick pattern appears.
- Short position: If the price continues to break below the lower Bollinger band and shows no signs of reversal, you can consider opening a short position.
### Recommendation:
- Risk management: Always set stop loss orders to manage risk. Monitor technical indicators and trading volume to make reasonable decisions.
- Combined with other factors: Technical analysis needs to be combined with other factors such as market news and fundamental analysis to have an overview and make accurate decisions.
Thus, the 4-hour chart shows a downtrend but a possible rebound from the oversold zone. However, it is necessary to be cautious and monitor other technical signals to make reasonable trading decisions.
