BTC 4-Hour Market Observation:
Current market liquidity continues to shrink, with spot and futures prices declining in tandem, leading to a subdued trading atmosphere. The key short liquidation zone above focuses on 105,500-106,000, while the long defense line below is around 103,000-103,500. If the stalemate continues until the end of the European session, the market may choose to first sweep the shorts upwards before pulling back, at which point it will provide a more ideal opportunity for shorting on the right side.
Short-term strategy tips:
Current volatility has been compressed to the extreme, with space being severely limited, making forced trades likely to be harvested.
Patiently wait for the price to test any liquidation zone, and pay attention to reversal signals after false breakouts.
Be vigilant for unusual movements in Asian major funds during U.S. stock market holidays; any sudden volume in thin liquidity could trigger momentary market fluctuations.
