6.16 Midday Analysis

Recently, the cryptocurrency market has shown significant volatility, especially during the weekend, with frequent fluctuations making short-term traders feel distressed, and the trading range is extremely limited. After in-depth analysis, Chang'an holds a bearish view on Bitcoin and Ethereum's future trends; the double top pattern formed on the weekly K-line indicates that the market may face significant retraction.

The weekly K-line for Bitcoin has formed a long upper shadow dark cross star, combined with the long lower shadow bright cross star from the previous week. From a long-term perspective, the possibility of a second bottoming and continuation of the downward trend is very high this week. On the daily K-line level, the Bollinger middle track and upper track continue to open downwards, constrained by the middle track for several days. Although the lower retraction points show gradual upward signs, seemingly forming an upward trend, the key resistance levels have not been effectively broken, leading to increased divergence between the two sides. The daily K-line MACD momentum continues to release, KDJ has formed a dead cross and continues downward, and RSI also shows a downward turn. These signals all point to the bears dominating, indicating a strong retraction demand in the market.

Suggestions

Focus on bearish strategies.

For Bitcoin, key resistance levels to watch above are 106000, 107000, and 108000. You may consider placing short positions when these levels are reached, targeting sequentially at 105000, 104000, and 102500.

For Ethereum, key levels to watch are 2580, 2610, and 2640. You may consider placing short positions at these levels, with target levels of 2530, 2480, and 2430.