From the four-hour technical chart, the market shows a significant downward trend. The candlesticks have continuously formed large bearish candles, with a full body and nearly no lower shadow, visually reflecting that the bears hold absolute dominance in the short term, with a strong sense of panic selling. The Bollinger Bands are continuously expanding and diverging downwards, indicating that the current market is in a high volatility range, and the bearish momentum has not been effectively released, suggesting that the short-term downtrend is likely to continue.
It is worth noting that the KDJ indicator has reached the oversold zone. Although the D value has not yet fallen below the critical threshold of 30, the oversold state of the indicator suggests a technical correction is needed in the market. However, given the strong bearish atmosphere in the current market, mere oversold conditions are insufficient to constitute a reversal signal. We need to closely watch for the KDJ indicator's three lines forming a golden cross, and for the price to effectively break through key resistance levels to confirm the temporary end of the downtrend and initiate a rebound.
Early morning analysis:
Bitcoin: 107500-108000 range, target 106500-106000, stop loss 109000
Ethereum: 2730-2750 range, target 2710-2690, stop loss 2770
