Bitcoin (BTC) Market Review and Analysis

I. Current Market Overview

After experiencing a surge in price, Bitcoin has once again shown a downward trend, currently falling below the critical price level of 108,000. However, it is noteworthy that after breaking this level, the price did not continue to decline significantly but gradually stabilized at a low level. This type of market behavior suggests the possibility of a 'bear trap', where the price might create panic through a brief decline, forcing some investors to close their positions, thereby clearing the way for subsequent upward movements.

II. Analysis of Bear Trap Possibility

From a technical perspective, bear traps often occur at key points where the market is about to reverse or continue its existing trend. The fact that Bitcoin did not continue to drop significantly after breaking below 108,000 may indicate that the bearish forces have been somewhat released, while bullish forces are quietly accumulating. Additionally, considering the overall market trends and fundamental factors, the macro environment for Bitcoin still favors long-term price increases. Therefore, the current trend has a high possibility of being a bear trap.

III. Evening Market Forecast and Operational Suggestions

Based on the above analysis, we predict that Bitcoin may experience a rebound in the evening. For investors, the following operational strategies are recommended:

• Long Position Layout: Given that Bitcoin is gradually stabilizing at a low level and there is a possibility of a bear trap, investors can appropriately lay out long positions after the price stabilizes. Specific entry points to watch are in the range of 107,500 - 108,000, which serves as a significant support level from earlier trading.

• Target Setting: If the long position layout is successful, after a price rebound, the target can first be set towards the range of 109,000 - 109,500. This range represents a key resistance level of recent price fluctuations, and if it can be successfully broken, the potential for further upward movement is expected to increase.

• Risk Control: During the operation process, investors must strictly set stop-loss and take-profit points, and manage their positions reasonably. The stop-loss can be set below the entry point by a certain margin, such as around 107,000, to prevent significant losses from further price declines. At the same time, when the price reaches the target or shows a clear reversal signal, profits should be taken promptly to lock in gains.