Daily level (1D): The V-shaped rebound has completed the first round of peak, the price has surged over 100% from the low of 1.71, and the upward momentum is clearly slowing down;
The series of K-line upward trends has ended, today's closing shape is relatively weak, frequent upper shadows at the top indicate signs of capital leaving;
The BBI indicator is about to turn green, a trend reversal may be imminent;
MACD red bars are shrinking + death cross is approaching, mid-term peak signals are becoming clearer.
Upward momentum is weakening, currently in a top oscillation phase, easily susceptible to false signals leading to a drop.
Four-hour line (4H): Two consecutive rounds of highs failed to break the 3.60 mark, the double top probing pattern at the top is obvious;
MA7 and MA30 are starting to converge, there is a risk of a death cross;
Volume is shrinking at a high level, bullish sentiment is declining;
RSI indicator has turned down from the overbought zone, short-term selling pressure is increasing. Bearish strength is accumulating, once the price breaks below 3.50, it will quickly trigger a correction wave.
One-hour line (1H): Small cycle forming a head and shoulders top structure, the right shoulder has started to decline;
The moving average system has turned downwards, MA7 has crossed below MA30, confirming a short position;
BBI has turned green, if it breaks below the short support level of 3.50, it will trigger an accelerated decline;
Trading volume is decreasing, clear divergence between volume and price, short-term bullish strength is hard to maintain. The short-term structure is bearish, a sharp drop with a downward candle is likely, it is recommended to short at highs.
Opening strategy layout
Direction: Short
Opening range: Place short orders around 3.53 - 3.56
First take profit level 3.48
Second take profit level 3.44
Stop loss level 3.60
