The tighter you fixate on the screen, the faster your judgment deteriorates. Top traders understand the importance of setting alerts and stepping away from the charts, as overtrading is the root cause of 95% of losses. Your anxiety is the best harvesting tool for the big players. The evening futures slightly dipped with the opening of the US stock market, dropping to 106500, but did not continue downward; it was just a brief spike before a quick rebound later in the evening, breaking the previous high and reaching around 107700. We continue to hold our short position at 107000, and the current price is around 107600.
Despite Bitcoin strongly breaking the previous high to 107700 in the evening, the technical indicators have given a strong warning signal: there is a clear divergence between volume and price at the breakout, with no increase in trading volume, and a triple top divergence formed in the MACD/KDJ indicators, while the price has hit the strong resistance level of the weekly downward trend line at 107700. The current RSI is severely overbought, and for the short position held at 107000, it is advised to move the stop-loss up to 108000, with a focus on potential stagnation signals in the 107700-108000 range. If the price shows a long upper shadow or a bearish engulfing pattern in this area,
consider gradually adding to the short position, aiming for targets of 107000→106500→105900. It should be noted that this round of increase lacks fundamental support, and the current price has overdrawn short-term gains. Under the top divergence structure, a high short strategy has a better risk-reward ratio, but strict stop-loss settings are necessary to guard against extreme market conditions.
