Crypto Circle Academician: 11.20 Bitcoin Overbought Zone Alarm Rings as Ascending Triangle Pattern Breaks, How Should Retail Investors Respond?
Current Bitcoin price is 93,200, it is now 2:30 AM Beijing time. Let's review yesterday's thoughts: the suggestion was to enter after a high push. Before this report, it is making new historical records, with the upper target focusing on 94,000. After breaking that, one can start testing short positions. Remember to defend well and set stop-losses, do not hold losing positions. If wrong, exit; if right, hold. Leave chasing the highs to others. If the market shows a sudden surge trend, don't rush to enter for now. Only start entering when it breaks above 94,000 and meets clear resistance.
After the daily candlestick breaks upwards, the EMA15 trend support is already at 85,200, and the stretch is not over yet; it continues. Major trend indicators continue upwards, MACD top divergence remains unchanged, DI and DEA are expanding at high levels, and the Bollinger Bands are opening up with upper and lower bands widening. The upper band is at 98,850, the middle band is at 80,500. The trend remains in the overbought area; the thinking is to not chase the market. For the cautious, observing is key. First, protect the tokens in hand, survive. Remember, the fundamental of trading is survival. Aggressive traders can look for opportunities to position shorts.
The four-hour candlestick has broken the ascending triangle pattern. According to the pattern indicators, there is indeed a lot of space above, even reaching a target of 100,000. There are obvious signs of bullish violent stretching, and it cannot be ruled out that this is an indicator deliberately provided by the main force. So, one can only judge after the market completes its movement. MACD has ended the contraction and started to expand upwards. A golden cross is formed above the 0 axis with DIF and DEA. The trend has just taken shape, and the bulls are too strong. The Bollinger Bands have also opened after breaking historical highs. The candlestick has broken the upper band at 92,900, and the middle band pullback is focused on 91,000. KDJ is opening upwards, and the market enters the overbought area where the main force may take profits at any time. Be careful not to get caught; at this moment, retail investors should not catch the falling knife but let the main force pull it. Be rational and protect the tokens in hand first; survive. Aggressive traders can position shorts.
Short-term thought reference:
Focus on effective shorts at 93,900 to 94,400, with a defense at 95,000, stop-loss at 500 points, target looking at 92,500 to 91,500, and breaking below looking at 90,500.
Focus on effective longs at 90,000 to 89,500, with a defense at 89,000, stop-loss at 500 points, target looking at 91,000 to 92,000, and breaking above looking at 92,500.
