6.21 Saturday Market Analysis
Hello everyone, I am Li Tao. Recently, the cryptocurrency market has been turbulent, with the price trends of Bitcoin affecting many investors' emotions. Last night, influenced by significant fluctuations in the US stock market, the price of Bitcoin experienced drastic volatility, suddenly entering a downward channel after a brief period of consolidation, plunging below the important support level of $103,500, forming a clear downtrend. As the price continues to dip, it has now reached a recent local low, and bearish sentiment in the market has been heating up. If the key support level below is breached again, Bitcoin may face a deeper correction, and the subsequent downward space may further open up.
However, the market is not entirely one-sided. When Bitcoin fell to above $103,000, it experienced a technical rebound. But the path for the rebound is fraught with difficulties, with $104,500 and $105,800 becoming two key resistance levels that are hard to overcome. If the bullish momentum cannot be sustained and effectively break through this resistance zone, then the overall downward trend of Bitcoin will continue, and the possibility of a short-term reversal is low.
Based on the current complex market environment and the US stock market being closed over the weekend, it is expected that the market will not experience significant fluctuations. Therefore, the approach we can take is to short at highs and long at lows, with short positions around $104,600-$105,000 and long positions around $102,600-$103,000. We can trade within this short-range back and forth. Any subsequent market developments will be followed up in real-time, so stay focused and don't get lost!
