Bitcoin rebounded yesterday, temporarily unable to break through the 100,000 point barrier and pulled back a bit. So how should we respond next?
Bitcoin reached around 97,200, with not much strength. During the night, it rose strongly again, breaking through new highs to around 99,650, just a step away from 100,000 points.
From a technical perspective, on daily and higher time frames, it remains a strong bullish trend icon. The 4-hour upward momentum is not enough; although it has increased by several thousand points from 90,000 to 92,000, currently there is still a risk of a top divergence icon on the 4-hour chart. Special attention should be paid to the strength of the pullback here, and it should not break below 96,500. If it breaks below here, it could pull back to around 93,000, making it more difficult to break through 100,000.
100,000 is a round number icon, a psychological pressure point. Once it breaks through, it could quickly rise by 2,000 or 3,000 points. Before breaking through, bulls need to accumulate strength.
For the day's trading, we first look at this pullback. He Yang suggests paying attention to short-term support around 97,500. If it breaks strongly, watch for around 96,500. Regardless of whether it breaks or not, there will be a rebound. In case of a strong break, watch around 95,000, then around 93,000.
If it can hold above 96,500 over the weekend, 100,000 points will definitely break, and quickly, with the next target around 102,000.
In terms of operation, focus on buying on pullbacks. Enter short positions only if there are small-scale divergences. 100,000 point is the main focus for the short term.
If you want to learn more about cryptocurrency and get cutting-edge information, click on my profile to follow me. I share contract trading skills for free and provide daily points.