Yesterday’s article reminded everyone to pay attention to the news in the evening and early morning. Now we can see from the current market that at 8:30 last night, the United States announced the core inflation rate, which was lower than previous expectations. This was good news, and then the price of Bitcoin began to rise directly, reaching a high of 70,000.
Then the price started to move sideways until about 2 a.m., when the Federal Reserve made its interest rate decision, announcing that it would maintain the current benchmark interest rate. Then the price of Bitcoin immediately began to fall. The ups and downs of Bitcoin's market appeared to be a door-shaped phenomenon. So far, the lowest price has fallen below 67,000, and the current price is around 67,500.
Then from the current four hours, Bitcoin has formed a sideways oscillation box at a high level. The previous two-stage decline was directly from the top of the box to the bottom of the box. The bottom is temporarily supported. Because of the news, the price rebounded, and also because of the news, the price fell again, so overall there is still support below.
However, the rebound was not very good. It failed to break through the 70,000 level, and the price fell again to test the support level below. In this case, the rebound was weak and tested the support below again, so the probability of a break through is actually quite high.
Then looking at the daily chart, combined with the situation of MACD, we can think that Bitcoin is showing a divergent trend at the daily level. First, we can see that the fast and slow lines of MACD are starting to move downward. The fast and slow lines of MACD correspond to the two breakthroughs of Bitcoin, with two high points respectively. It can be found that the high points of the fast and slow lines are lower, but the corresponding Bitcoin prices are almost at the same position, so it can be considered a divergent trend.
To sum up, the daily situation does not look particularly good at the moment. The four-hour box is currently unable to rebound and continues to test the support level downward. It is possible that it will further fall through the support level below.
Then the next target price point may be the weekly trend line support. As shown in the figure above, it is now estimated that it may fall to around 61,000. Therefore, once the price of Bitcoin falls below the four-hour box, everyone should be careful that the price may fall sharply.
