Yesterday, the 920 level did not break, and there was a 4-hour level rebound, but in the end, it still could not stabilize, and one could even say danger is approaching. Today is the end of the year, quarter, and month, all closing with new candles. Let's take a look at the market, and you will understand why danger is approaching.
First, look at the yearly line:
Volume decreases while prices rise, showing a clear divergence (volume is positively correlated with price; without volume, any rise will quickly fall back down, and the price range in between is a vacuum).
Now let's look at the quarterly line:
Once again, there is a divergence between volume and price, with RSI entering the overbought zone, long upper shadows, and strong selling pressure. Prices need to return to a suitable range to have strong buying power for support; at least, there hasn't been a real test of any strong support. 90,000 is currently the only defense line. As long as the smaller time frames do not break below 932, it's still okay. Anyway, the risks of going long are greater than going short; long positions can only be quick in and out. The market movements in the past few evenings have proven this point.
Now let's look at the monthly line:
Just asking if it looks similar, a doji on the left, a hanging man on the right, and there is a large futures gap below.
But as everyone can see, there is also a gap at 1030 that needs to be filled. The large-scale pullback takes a long time; we can only confirm it in smaller time frames:
The daily line tested the upper pressure yesterday, but unfortunately, it did not close above 937 and did not confirm the support at 920 with volume. So we should consider at what price to short and look at the smaller time frames:
The peaks are continuously lowering, with pressure at 957. There are heavy resistances at 964, 972, 996. Positions near 920 can gradually move the stop-loss up. If we break the first level of resistance, the stop-loss should be set 100 points below. If all resistance levels are broken, then the upper pressure is at 1030, which is not so optimistic yet.
For short positions, we are now watching the pressure situation near 957 or the breakdown of 920. If it breaks down, we will short.
BlackRock's Bitcoin ETF has been in a state of outflow these days.
The clearing map also shows strong bearish forces.
Anyway, it's better to be cautious; shorting is safer.
The morning trading idea analysis is complete. What do you think, dear viewers? Feel free to discuss and exchange ideas in the comments. Here is your little analyst who loves you, providing free daily analysis (sending love).
