Last night, after Bitcoin stabilized around 106,500, there was a surge of bullish momentum, leading to a strong upward trend, peaking near 108,800. Unfortunately, the short positions we set up at midnight were swept away with losses. This wave of bullish breakout was also unexpected for me. After all, there are no invincible warriors in the crypto world, only practical teachers who have experienced strict stop-losses will have losses. Currently, the price has retraced to around 107,500.
The current market shows signs of stagnation. The 4-hour RSI is overbought and has formed a top divergence, coupled with the trading volume not continuing to increase, indicating a weakening of short-term bullish momentum. If it fails to break through the upper resistance of the 108,500-109,000 channel, it may trigger a technical pullback, with initial support to watch at the Fibonacci retracement levels of 106,200 and 105,500.
Bitcoin strategy: Short near 107,600-108,000, target 106,200.
