After hitting an all-time high of $99,588 over the weekend, Bitcoin entered a volatile decline mode. It started a large correction from $98,500 around evening yesterday, and reached a low of $95,745 at midnight. However, it rebounded as of the time of writing and is currently quoted at $98,528, down 0.13% in the past 24 hours.
As Bitcoin fell, the total amount of cryptocurrency liquidations reached US$495 million in the past 24 hours, with long positions liquidated US$364 million and short positions liquidated US$131 million. More than 193,000 people were liquidated.
Bitcoin daily chart
First, according to the Bollinger Band indicator in the Bitcoin daily chart, the current price is running near the upper track of the Bollinger Band and briefly breaks through the upper track, indicating that the bulls are still strong, but the price is over-upward and there is a possibility of a correction. If the price continues to run near the upper track and fails to fall below the middle track, it means that the bullish pattern has not changed. But if the price falls below the middle track of the Bollinger Band, a deeper correction may occur.
Secondly, according to the KDJ indicator in the Bitcoin daily chart, the K-line value and the D-line value are at a high level, and the J-line value is already in the overbought area. The K-line value and the D-line value show signs of turning downward, and there may be a risk of a callback in the short term. If the three-line value of KDJ forms a dead cross downward, the downward pressure will increase. If it can still maintain a high level of consolidation and does not form a dead cross pattern, there may be a possibility of continuing to rise.
Finally, according to the MACD indicator in the Bitcoin daily chart, the DIF line and the DEA line are both above the 0 axis, but the two lines are gradually approaching. If a dead cross pattern is formed later, the market will start to pull back. Although the MACD histogram is red, the histogram shows signs of shortening, indicating that the upward momentum is gradually weakening.
Bitcoin four-hour chart
First of all, according to the Bollinger Band indicator in the Bitcoin 4H level chart, the current price is oscillating between the middle and upper tracks of the Bollinger Band, and the upper track has a certain degree of suppression on the price. The middle track serves as support. If it falls below the middle track, the price may move to the lower track. If the price returns to the upper track of the Bollinger Band and breaks through, it will continue to move upward.
Secondly, according to the KDJ indicator in the Bitcoin 4H level chart, the KDJ three-line value is running at a high level, but the K-line value and the D-line value show signs of turning downward, and the J-line value has begun to fall back, which indicates that there is a correction pressure after overbought in the short term. If the K-line value crosses the D-line value to form a dead cross pattern, it may trigger deeper downward pressure. If KDJ continues to rise after consolidating at a high level, the upward trend will continue.
Finally, according to the MACD indicator in the Bitcoin 4H level chart, the MACD red bar chart continues to shorten, indicating that the upward momentum has weakened, and the DIF line has also approached the DEA line. If a dead cross is formed later, the risk of downside in the short term will increase. If the DIF line continues to move upward and away from the DEA line, it means that the bulls still have the upper hand.
Comprehensive analysis shows that Bitcoin is currently in a high-level consolidation phase after a strong rise. Both MACD and KDJ show that they may face adjustment pressure in the short term, but the Bollinger Bands still show the existence of bullish power. Bitcoin shows signs of weakening short-term momentum at the 4-hour level, mainly reflected in the shortening of the MACD red bar chart, the downward turning of KDJ, and the pressure of the upper track of the Bollinger Bands. However, the middle track of the Bollinger Bands still provides support, and the overall trend has not completely weakened.
In summary, the great master gives the following suggestions for reference
It is recommended to go long when Bitcoin pulls back to around 98000-97800, with a target of 99800-100000 and a defense of 97400.
It is recommended to short Bitcoin when it rebounds to around 99800-100000, with the target at 97600-97400 and the defense at 100400.
Writing time: (2024-11-25, 18:00)
(Text-Daxian Talks about Coins)
