Bitcoin 4-Hour Resistance Level Becomes Key, Breakthrough or Not Determines Bullish or Bearish Direction
The current Bitcoin (BTC) price is just a line away from the last 4-hour resistance level, and the battle between bulls and bears has entered a white-hot stage. Whether it breaks through or not will become a watershed for market direction, and close attention must be paid to short-term capital movements and volume changes.
1. Resistance Level Breakthrough: Opens Upward Space
• Key Position: The 4-hour chart resistance level is concentrated in the $106,200 - $106,500 range. If it breaks through with volume and holds, it is expected to initiate a new round of bullish momentum.
• Upward Target: First target $108,000 (testing previous highs), second target $110,000 (upper limit of the consolidation range).
• Confirmation Signal: The trading volume during the breakout needs to increase by more than 30% compared to the previous hour, and the closing price on the 1-hour line must hold above the resistance level.
2. Pressure Retreat: Focus on Short Strategies
• Current Strategy: If the price encounters resistance and falls back in the $105,500 - $106,000 range, a light short position can be taken based on the resistance level.
◦ Entry Range: $105,500 - $106,000
◦ Short-Term Target: $104,000 (retesting the 4-hour support)
◦ Swing Target: $102,000 (strong daily support)
◦ Stop Loss Setting: $106,500 (stop loss if resistance level is broken)
3. Key Points and Risk Warnings
1. Position Control: Short position not exceeding 3%. If reversing to go long after a breakthrough, the position must also be strictly limited to avoid chasing highs and cutting losses.
2. Time Window: Focus on the trading period from 10 PM to 2 AM tonight, as this period often sees directional choices (influenced by US stock market close and overseas major capital operations).
3. News Vigilance: Federal Reserve officials' speeches, US CPI data, etc., may trigger market volatility. Ensure no major news is released before taking action.
Summary
Adopting a **“breakthrough chasing highs, shorting when encountering resistance”** dual strategy near the resistance level is more flexible. However, it must be remembered: the current market has poor continuity, and both bulls and bears need to enter and exit quickly to avoid prolonged exposure to news risks.
