GM!
Today's analysis and trading strategy for Bitcoin!
Currently, Bitcoin is in a critical area of a tug-of-war between bulls and bears, with a large number of short positions accumulating around $108,000. If liquidation is not triggered, be wary of a reverse fluctuation. On the hourly level, it is crucial to focus on the breakthrough of the closing price at $105,563; if there is a volume breakout, one can consider going long on the right side, with a target range of $106,485-$107,043. If there is a further breakthrough at $106,891, be cautious of a 2B false breakout trap, and consider a light short position with a stop loss set at $107,841.
On the support side, if $105,415 is breached but quickly recovers, one can consider going short on the right side. However, if there is a false breach down to $104,587 followed by a recovery, one can take a light position in anticipation of a rebound, with the stop loss set at the low of the false breach or at the round number of $104,000. Conservative investors may wait for a pullback.
After confirming support at $103,687, one can enter; if it falls below $103,000, a stop loss should be set to exit.
From a morphological perspective, a W-bottom pattern on the 4-hour level needs to break through and stabilize above $106,849; this position is a watershed between bulls and bears. If it cannot break through effectively, the pattern will be invalidated.
In terms of operations, a tiered strategy is recommended: aggressive traders can engage in breakout/pullback trades around key price levels, strictly adjusting positions according to changes in volume; conservative traders should patiently wait for confirmation of the pattern before entering. The current market volatility is high, and it is essential to guard against false breakout traps. All operations must have clear stop-loss settings to avoid holding positions against the trend.
