Bitcoin faced pressure around $97,721 at midnight and began to pull back. The price fell to find support near $95,393, showing signs of stopping the decline. The charm of the market lies in its potential for reversals; the bearish trend did not continue but instead showed a strong rebound from the bottom, with the price quickly rising to around $97,777, returning to the initial starting point of the decline. Hype, Sui, and Binance strong stocks rebounded. Currently, the market has entered a consolidation phase, and the price trend of the altcoins is similar to that of Bitcoin, undergoing a rebound after a decline, with prices reaching a high near $3,492 and a low around $3,391.
Recently, Bitcoin's trading pattern shows characteristics of falling first and then rising. From a technical perspective, in the early stages of the decline, the opening of the Bollinger Bands gradually expanded, and the middle band was moving down, indicating that bears were in control. The price continued to dive along the lower band, with green bars amplifying until forming key support near $95,000, changing market sentiment, and the price began to stop declining and rebound. As trading volume gradually increased, the rebound trend became apparent. However, despite the price rebound, the upward momentum did not last, and the dominant direction of the market still leaned towards bears.
Bitcoin prices have experienced severe fluctuations recently, with over 300,000 people globally liquidated due to high-leverage trading, losing more than $1 billion.
Short-term and medium-term outlook
Considering various factors, the market trend in the short term will depend on a single thought. If the spot price rises slightly, it may lead to a large number of short positions being closed, thus pushing the market up. The key price point for Bitcoin is $90,000. Further analysis shows the starting point for declines is above $98,200.
If the price can rebound to this range, the market is expected to return to the lower half of the channel for consolidation. However, if it fails to reach, there will be certain resistance above, increasing the likelihood of a secondary phenomenon.
Many people have been losing money in recent months, with three main reasons:
1. BTC continues to short, liquidation or severe resistance
2. Full position in junk altcoins, multiple switches face losses, repeatedly stop-loss
3. Heavy position in meme coins, especially some new meme coins, several waves with 70% cut losses
Warren Buffett once said, if you are not willing to hold a stock for ten years, then don't hold it for even a day. If a coin does not have a long-term holding logic, participating in short-term speculation greatly increases the probability of being cut. In long-term investments, these coins fall far short of Bitcoin and Ethereum, and also lag behind the leading coins in major sectors. Therefore, some junk altcoins have little investment and trading value, and avoiding them in the long term is the best choice; otherwise, there is a risk of missing out on a bull market.
