On the 4-hour candlestick chart, Bitcoin has been trading sideways for a period of time in the $61,000 to $62,000 range. Subsequently, market sentiment shifted from bullish to bearish. This shift may indicate a variant of the Evening Star pattern, a potential reversal signal that needs to be vigilant at the 4-hour level.
After the previous rise, Bitcoin not only traded sideways for several 4-hour cycles, but also left an upper shadow above the price, which usually indicates that the buyer's power is beginning to dry up. At the same time, the continued decline in trading volume also reflects the weakening of buyer momentum, which further strengthens the signal that the market may turn.
Combining these candlestick patterns and changes in trading volume, we have reason to believe that this may be a precursor to Bitcoin's imminent sideways consolidation or continued decline for a second bottoming out. Everyone should be alert to these market signals and adjust their trading strategies and risk management measures in a timely manner.
