7.12 Bitcoin violently surged, Ethereum soared, how should long and short positions be arranged in the future?
Currently, the head and shoulders pattern on the four-hour chart of Bitcoin has been completed, and the market has again entered a horizontal consolidation phase. Bulls are attempting to test the upper Bollinger Band, but the continuation is insufficient, and momentum is weak, with an overall tendency towards a bearish structure. The market has not been able to break the oscillation range, showing a 'step back every step' movement to correct the current situation. It is expected that the market will display a volatile consolidation trend over the weekend, with a high likelihood of the fluctuation range narrowing. From a trend perspective, the market is still operating within an ascending channel, and short-term adjustments are part of a normal rhythm, which is unlikely to alter the overall direction dominated by bulls. In terms of operational strategy, it is recommended to adopt a pullback strategy to lay out long positions, relying on key support levels to seize low-buy opportunities for greater stability.
Ethereum is currently facing a directional choice, forming a clear accumulation peak in the 2930-2970 range, with the current price testing the lower support of this area. Combined with the MACD death cross signal, there is a risk of a downward breakout in the short term. More notably, recent trading volume has shrunk by 17%, indicating a strong wait-and-see sentiment in the market. Technically, although the EMA24 and EMA52 still maintain a bullish arrangement, the hanging man combined with a top distribution pattern appears, suggesting that the upward momentum is weakening. The strong support area below is 2650; if it breaks below 2850, it may accelerate toward that area.
Operational Suggestions:
Buy Bitcoin at 115500-116000, target around 118000-120000. Stop loss at 115000.
Buy Ethereum at 2860-2900, target around 3000-3100. Stop loss at 2800.
