Bitcoin Market Technical Analysis and Trading Strategy

Currently, the Bitcoin market is exhibiting a typical range-bound oscillation pattern, with resistance above and support below, as the overall trend seeks a directional breakout in the tug-of-war between bulls and bears. The price operates within a core range, with strong resistance forming at $108,500 above and critical short-term support at $106,000 below, serving as important reference indicators for judging future trends.

Daily Technical Analysis

On the daily chart, the Bitcoin price is in a high-level oscillation state. Previous candlestick patterns have shown long upper shadows, indicating that the market has encountered strong selling pressure at high levels, with bearish forces taking a temporary advantage. The subsequent closing prices continue to decline, confirming the market's demand for a correction, as prices gradually approach the lower support area. It is worth noting that although bulls are attempting to maintain high price levels, the lack of volume support has limited upward momentum, necessitating caution against further correction risks in the short term.

4-Hour Technical Analysis

On the 4-hour chart, prices continue to show a range-bound consolidation trend. From a technical indicator perspective, the MACD indicator's dual lines are operating near the zero axis, with the histogram turning from red to green, and the green momentum bars gradually strengthening, indicating that short-term bullish strength is waning while bearish strength begins to dominate. Additionally, the moving average system is in a tangled state, reflecting that both sides of the market have yet to establish a clear directional guidance within this timeframe, suggesting that the oscillation pattern may continue.

Trading Strategy Recommendations

Based on the current technical analysis, it is recommended to adopt a high-short strategy: place short positions at highs within the $107,300 - $107,800 range, with stop-loss set above $108,200 to control potential risks; target the key support level at $106,000 below to capture swing profits. It is essential to closely monitor changes in market volume and breakthrough situations at key levels, adjusting trading strategies promptly to guard against sudden market fluctuations.