Yesterday, the market was also affected by news in the early morning, but a stop-loss was also provided. This sudden news was something Li Tao did not anticipate.

From a technical analysis perspective, the 4-hour K-line pattern shows that after experiencing a deep correction, the asset price was driven by unexpected positive news, recording two consecutive solid bullish candles. Not only did it completely recover lost ground, but it also established a classic V-shaped reversal structure in a short period. However, when the price climbed to the upper Bollinger Band area, it clearly faced strong resistance, and the pace of the upward movement significantly slowed down.

Further analyzing the 1-hour cycle indicators, the KDJ stochastic indicator's three lines formed a high-position death cross shape in the overbought zone, with the K-line and D-line both pointing downwards, indicating that the short-term bullish momentum has been almost exhausted, and the market may face profit-taking selling pressure. Although the MACD indicator showed a brief expansion of the red bars, the double lines are still operating below the zero axis, and the essence of the downtrend has not fundamentally reversed. This rebound is very likely to be a corrective movement within a downtrend. Based on the comprehensive analysis of multiple time-frame technical signals, subsequent trading strategies are advised to focus on high short positions, paying close attention to the performance under key resistance levels to guard against the risk of chasing highs.

Bitcoin: Short near 106000-105500, target 104000-103500

Ethereum: Short near 2450-2430, target 2360-2340