In-depth analysis of the current market structure shows that the market remains deeply trapped in a broad volatility pattern, making it difficult to break free. Such repetitive trends can be quite boring. In this market context, based on past experience, implementing a high-short, low-long strategy around the highs and lows generally does not lead to significant mistakes.
Upon detailed observation of the 4-hour level trend, the K-line closely follows the short-term moving averages, showing a slightly stronger volatile trend. In the moving average (MA) system, short-term moving averages such as the 5-day and 10-day moving averages are in a bullish arrangement, providing a certain degree of support for Bitcoin's upward movement, indicating that the short-term bullish forces occupy a relatively favorable position.
Although the current price is temporarily near the support level, the Bollinger Bands indicator shows that the middle band provides strong support for the price, and the opening of the Bollinger Bands is gradually narrowing, suggesting that the market is about to choose a direction. From the stochastic indicator (KDJ) perspective, the J value is turning upward in the oversold area, forming a golden cross with the K value and D value, indicating that the short-term market's oversold condition is easing, and bullish strength is gradually increasing. Based on these technical indicators, Bitcoin basically does not have much downward adjustment space and is inclined to continue the rebound trend in the short-term.
Today, it is essential to focus on the ebb and flow of bullish and bearish forces, paying attention to whether the price trend will strongly recover after a retracement or accelerate further downwards. If the price further declines, it will not only break the current strong upward pattern, leading to a short-term pullback but also is likely to trigger a series of technical indicators to reverse, such as the destruction of the bullish arrangement of moving averages and the KDJ indicator re-entering the overbought area. Conversely, if Bitcoin stabilizes and rebounds, successfully recovering lost ground, bullish forces will continue to accumulate strength and launch an assault on higher price levels.
Go long on Bitcoin at the 94200 line, stop loss at 800, target at 96000; go long on Ethereum at the 3395 line, stop loss at 40, target at 3455.
Follow me for daily updates on the latest and highest quality market information. Wishing you smooth sailing on your path to wealth.
