Yesterday, Bitcoin made a significant recovery after holding the bottom, and closed with a large bullish candle. The price found support around 62000 and started to correct, with an intraday high of 63850, eventually closing with a green candle. Due to the appearance of a large bullish candle on the daily chart, a second short-term recovery is expected today to test the resistance above. The purpose of this second high test could be to adjust the technical indicators or prepare for a deeper correction.
From the 4-hour chart, Bitcoin recovered and stabilized after yesterday's drop, and the subsequent large bullish candle pushed the price up. Due to the large recovery and high closing position, the short-term trend of the day may turn to ranging, which has at least broken the previous unidirectional downtrend. In such a rapidly falling market, as the technical indicators have not yet completely reversed, the room for corrective recovery may be relatively large. Considering yesterday's closing position, today's short-term trend may continue to fluctuate, and may be accompanied by a decline after the second recovery. Therefore, today's trading strategy recommends keeping a short-selling mindset after recovery.
Trading strategy: sell when the price recovers to 63350-63850, target is 61800-61300, stop loss 64000
Have a nice day everyone
