Cryptocurrency Scholar: The right shoulder of the head and shoulders pattern completed at 106,000 Bitcoin! Is it time for a hunting mode? Are bears making a comeback? Latest market analysis reference
Current Bitcoin price is 104,000, it is now 1 AM Beijing time, everyone knows the entry point, for those who don't, fans can refer to previous articles. This week there have been multiple stretches above 106,000, including the highest point on the daily line before publication also around 106,000, which are all good opportunities. I have said it many times, do not doubt your system. If you can't execute 100%, even a slight deviation is self-destructive. You think you're making flexible adjustments, but in reality, you're dismantling your own trading system by replacing rules with emotions, ultimately becoming the market's chives. Remember, the value of a trading system lies not in its design, but in its execution.
Looking at the daily candlestick, the highest is 105,950, the lowest is 103,900, and the lowest point just happens to be at the golden ratio 0.786 support line, which is also the EMA30 trend support. At this position, you can take some profits, but don’t exit completely because the head and shoulders pattern in the daily candlestick is already very obvious. Currently, there is no better entry point for short positions above 106,000. Plus, after the MACD top divergence, the DIF and DEA are getting closer to the 0 axis, and the bears are reducing their positions while increasing their holdings. The candlestick is blocked, and the Bollinger Bands middle line is starting to approach the lower support at 102,300. The overall trend shows that the market's bearish sentiment is very strong.
The four-hour candlestick has broken down through the EMA five-day trend line, impacting previous lows. Therefore, continue holding for the southward movement; don’t rush to liquidate. The MACD has been continuously reducing its volume while increasing its holdings. The DIF and DEA have formed a death cross. Plus, the candlestick has broken below the Bollinger Bands lower support at 103,900, which already indicates the bears' intentions. Regardless of whether it is a real or false vacuum, we are already in a position of advantage; just hold patiently.
Short-term reference: The market is not 100%, so be sure to set stop-losses. Safety first; small losses and big profits are the goal.
For a northern entry point, 102,000 to 101,500 to go long, with a defense at 101,000, stop-loss at 500 points, target looking at 103,000 to 104,000, breaking position at 104,500.
For a southern entry point, 106,000 to 106,500 to go short, with a defense at 107,000, stop-loss at 500 points, target looking at 105,000 to 104,000, breaking position at 103,000.
Specific operations should be based on real-time market data. For more information, please consult the author. The publication of this article has a delay; it is advised for reference only, and the risk is borne by yourself.