Bitcoin Market Analysis November 4, 2024]

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The current Bitcoin price is approximately $69,100, having continued to decline yesterday and formed a pin bar drop, breaking through the previous important support level. Although the current market shows some signs of upward rebound, it is expected that the daily candlestick may stabilize above the support level at the close.

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Support and Rebound Analysis

Bitcoin's pin bar drop has broken through key support levels, however, the bearish momentum is releasing quickly in the short term. If considering shorting at low levels, now is not an ideal time; it is recommended to wait for a rebound signal from the daily candlestick. The strength of the next rebound will determine the subsequent market conditions. If the rebound cannot break through the previous high, the market may continue to correct downward, entering a medium-term bearish market. Currently, the bullish arrangement has not been broken, making it very important to focus on the effectiveness of the support level.

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Key Resistance Levels and Trading Strategy

The current key resistance level is around $69,600, where it not only marks a previous high but also intersects with the downward trend line. It is advisable to observe bearish signals within this price range and consider holding back, waiting for further decisions after a rebound.

Stop-loss Strategy: Setting stop-losses is crucial when trading; it is recommended to set the stop-loss above the previous high or within a space not exceeding 2% to reduce risk.

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Liquidation Situation

Despite Bitcoin's price rising from $58,000 to $69,100, liquidation phenomena remain severe. Most liquidations occur among bulls, due to traders chasing prices at high levels without strict stop-losses.

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Conclusion and Recommendations

In the current market environment, investors are advised to remain cautious, focusing on the strength of the rebound and the performance of key resistance levels. Chasing prices should be approached with caution, avoiding blind bullish positions at high levels. It is hoped that the above analysis is helpful for your investment decisions.

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