July 3rd, Thursday Morning Market Analysis

Last night, Bitcoin stopped falling around 105,000 and began to slowly rally in the morning. The market operator played a trick by first inducing short positions and then forcing them out, pushing the price up by 5,000 points. This extreme market action basically liquidated most of the short positions. Zhang Heng also couldn't escape the fate of being liquidated [smirk]. However, one must acknowledge their mistakes and stand tall when taking hits! Fortunately, the trades we made early in the morning helped us regain some losses!

From the current 1-hour chart perspective, bearish signals are evident: Regarding the Bollinger Bands, the price rose to the upper band and then retreated, having already broken through the middle band. The channel opening shows signs of narrowing downwards, indicating a weakening short-term trend; On the MACD indicator, the red bars are shortening, and the difference between the DIF and DEA is narrowing, indicating a decline in bullish momentum. If a death cross forms, bearish strength may be further released; In the KDJ indicator, the K line is turning down and will cross below the D line, indicating a demand for a pullback after being overbought. In summary, short-term upward momentum is insufficient and the technical outlook shows a high risk of a pullback. Pay attention to the key support below; if effectively broken, the downtrend may continue.

Morning Trading Suggestions

Bitcoin: Short at 109,000, target around 107,000

Ethereum: Short at 2,580, target around 2,480