The cryptocurrency market has been volatile recently, with the price of Bitcoin ($BTC ) climbing rapidly from $58,900 to $69,000, a $10,000 increase in less than half a day. For those familiar with market analysis, this rapid rise usually heralds a complete cycle on the 4-hour chart, including three stages of rising, falling, and rising again. At present, we may be at the end of the rising stage of this cycle, and it is expected that the next falling stage may touch around $63,000, while the final rising stage may push the price to the $70,000 to $73,000 range.
From the daily chart, Bitcoin formed a top evening star pattern yesterday, which is a typical bearish signal. Although market sentiment has not yet reached extreme enthusiasm, investors generally remain cautious. In addition, the MACD indicator at the daily level shows that although the fast and slow lines are already at high levels, the market may still experience the so-called "air refueling" phenomenon, that is, the price will not fall immediately in the short term. Usually in this case, the next 2 to 3 days will be an ideal time to short.
If Bitcoin continues to hit new highs on the following Monday or Tuesday, investors should consider reducing their positions by at least 50% to 70%. Such a strategy can help investors maintain flexibility in possible market corrections and protect existing profits. Of course, the market is always full of uncertainty, so before making any investment decisions, investors should fully consider their risk tolerance and market conditions.