Hello brothers on Saturday, July 5, 2025! Let's continue summarizing trading insights!
Recently, the temperature in this area has been soaring at 40°, with even higher surface temperatures, making it hard to have any appetite or desire to go out! It feels like heatstroke could strike at any moment; shouldn't we take our families to the mountains to escape the heat this weekend?
I hope this high temperature hasn't caused you to make FOMO trades last night. Last night's live stream discussed accelerating declines and waiting for the next support level!
Bitcoin is quite strong, with a second dip touching 107200 at dawn, quickly pulling back. Compared to the first dip of 107500 earlier in the night, the volume standard shows a shrinking second dip divergence, signaling to go long by one position. This small signal has been mentioned almost every night; even if you don't go long, you certainly shouldn't chase a short at dawn!
This is what I often tell you: focus on the pattern, not the points!
ETH touched a low of 2473 in the early morning, just 9 dollars shy of hitting our target of 2466. Around 3:00 AM, a small double bottom formed, and it has now recovered to 2500. The ultra-short right-side rise is currently ongoing. I didn't exit at 2510 last night, and I didn't hit the 2466 buy-in because I don't stay up late. So, while the early morning market was good, it’s no longer suitable for an old man like me!
For this weekend's market, let's take the early morning low as the boundary. The lower boundary is unlikely to reach that low point again. Let's see today's rebound high; we don't need it to be too high. If it can rebound to around 2542 and Bitcoin to around 109000, then the weekend will enter a very standard consolidation and repair phase!
So, never chase shorts or longs; just focus on ultra-short reversal signals at support and resistance levels. The closer you get to the lower support level, the more you wait to see if there are any reversal buy signals. The closer you get to key resistance levels, the more you look for any short signals!
Recently, I’ve mentioned support and resistance levels multiple times:
BTC Support/Resistance Levels: 112000/109500/107507/106132/104757
ETH Support/Resistance Levels: 2585/2542/2466/2403/2343
These levels can be monitored over the weekend, and when the price approaches these levels, look for buy or sell signals based on the volume-price relationship!
