Bitcoin encountered pressure around $97,721 at midnight and began to pull back. The price dipped and found support around $95,393, showing signs of stopping the decline. The charm of the market lies in its potential for reversal; the bearish trend did not continue but instead showed a strong rebound from the bottom, with prices quickly rising back to around $97,777, returning to the initial point of decline. Hype, Sui, and Binance's strong coins rebounded. Currently, the market has entered a consolidation phase, and the movement of the Auntie coin is similar to that of Bitcoin, experiencing a rebound after a decline, with its price reaching a high around $3,492 and a low around $3,391.
Recently, the Bitcoin market has shown a pattern of first falling and then rising. From a technical perspective, in the early stage of the decline, the Bollinger Bands were gradually widening, with the middle band trending downwards, indicating a bearish dominance. The price continued to test the lower Bollinger Band, with green bars increasing, until key support was formed around $95,000, leading to a change in market sentiment, and the price began to stop falling and rebound. As trading volume gradually increased, the rebound trend began to emerge. However, despite the price rebound, the upward momentum did not persist, and the market's dominant direction still leaned towards bearish.
Recently, Bitcoin's price has shown extreme volatility, with over 300,000 people globally facing liquidation due to high leverage trading, resulting in losses exceeding $1 billion.
Short-term and medium-term outlook
Considering various factors, the market trend in the short term will depend on a moment's 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 the decline is above $98,200.
If the price can recover to this range, the market is expected to return to the lower half of the channel for consolidation. However, if it fails to reach this, there will be certain resistance above, increasing the likelihood of a second-child phenomenon occurring.
Many people have been losing money these past few months for three main reasons:
1. BTC continuously short, liquidation or serious resistance
2. Full position in junk altcoins, multiple switches result in losses, frequent stop-losses
3. Heavy investment in meme coins, especially some new meme coins, several rounds of 70% losses
Warren Buffett once said that if you aren't willing to hold a stock for ten years, you shouldn't hold it for even a day. If a coin doesn't have a long-term holding logic, short-term speculative participation makes it highly likely to be cut as a leek. For long-term investments, these coins are far inferior to Bitcoin and Ethereum, and they don't compare to the leading coins in various sectors. Therefore, many junk altcoins have little investment or trading value; the best choice is to avoid them in the long term, or else there is a risk of missing out on a bull market.
