Bitcoin encountered pressure at around $97,721 during the midnight period and started to pull back. Its price continued to fall, finding support near $95,393 to stop the decline. The charm of the market lies in its reversal potential. The short trend did not continue to advance, but instead rebounded strongly from the bottom. The price quickly rebounded to around $97,777, returning to the initial decline point. Hype, Sui and Binance's strong coins all rebounded. At present, the market has entered a sideways consolidation state. Ethereum's trend is similar to Bitcoin. After experiencing a rebound process after the decline, its price hit a high point near $3,492 and a low point at $3,391.
Recently, the Bitcoin market has shown a trend of first decline and then rise. From a technical perspective, in the initial stage of the downward trend, the Bollinger Band opening gradually widened, and the middle track went down, indicating that the bears were in control of the situation. The price continued to decline along the lower track of the Bollinger Band, and the green column enlarged until it formed a key support near $95,000. The market sentiment changed, and the price began to stop falling and rise. With the gradual increase in trading volume, the rebound trend gradually formed. However, even if the price rebounded, the upward momentum failed to continue, and the market's dominant direction still tended to be short.
The price of Bitcoin has fluctuated violently recently, with more than 300,000 people worldwide having their positions liquidated due to high-leverage trading, losing more than $1 billion.
Short-term and medium-term outlook
Taking all factors into consideration, the market trend in the short term will be on the line. If the spot price rises slightly, it is very likely that a large number of short orders will be closed, which will push the market up. The key price of Bitcoin is $90,000. In-depth analysis shows that the starting point of the decline is above $98,200.
If the price can rebound back to this range, then the market will hopefully return to the lower half of the channel to start oscillating. But if it cannot reach that level, then there will be some resistance above, and the probability of a second bottoming out will increase.
I found that many people have lost money in the past few months. There are three main reasons:
BTC continues to be shorted and faces the possibility of liquidation or severe resistance to orders.
If you invest all your funds in low-quality altcoins, you will suffer setbacks after multiple rounds of market changes and frequently have to stop losses and exit the market.
Those who rushed into the meme coin field with a heavy position, especially some emerging meme coins, suffered multiple rounds of losses of up to 70%.
Buffett once said that if you don't want to hold a stock for ten years, you shouldn't hold it for even a day. For cryptocurrencies, if a currency lacks a reasonable logic for long-term holding and only participates in short-term games, it is likely to become the target of being cut. If you make long-term investments, this type of currency is significantly different from Bitcoin and Ethereum, as well as the leading currencies in various sectors. Therefore, some junk altcoins have no investment and trading value. It is best to stay away from them for a long time, otherwise you may miss the bull market.
