After Bitcoin surged to $107,971 during the day, it fell back, forming a doji candlestick with a long upper shadow. This pattern is considered a variant of the 'Shooting Star' in technical analysis, indicating strong selling pressure from trapped positions in the $107,500-$108,000 range. Combined with the daily MA20 ($106,200) and the Fibonacci 61.8% retracement level ($107,300), the difficulty of a short-term breakout has significantly increased. If the closing price continues to stay below $106,200, a 'Evening Star' formation may develop on the daily chart, further confirming the downtrend.
Validity of the MACD second death cross at the hourly level: The hourly MACD has formed a second death cross below the zero line, with the green momentum bars increasing for three consecutive periods, corresponding to the RSI dropping quickly from 50 to 35, showing that bearish strength has shifted from 'volatile adjustment' to 'active selling'.
Therefore, early in the morning, the suggestion for Bitcoin is to look for a slight rebound to go short.
Bitcoin: Short near $107,500, targeting $106,000 and $105,000
