7.14 Bitcoin breaks through the historical high of 120,000 again, where will the subsequent pullback gap be?
After breaking the previous high of $11,888, Bitcoin surged to a historical high of $123,300. The recent market has continuously reached new historical highs. Is this the start of a main upward wave, or is it the final trap for the bulls? From a technical perspective, there is a clear divergence on the 4-hour chart. From a macro view, this surge reflects the strength of American institutions. In theory, at this price, short-term retail investors should not be buying Bitcoin at such high levels. The inflow of trading volume is obviously not as fierce as before, so there is a possibility of selling off at high positions at any time. It is not recommended to chase the market at this time; it would be better to set up short positions at high levels.
Ethereum has also genuinely broken out on the daily chart. After breaking 3,040, it has risen to 3,083. If Ethereum catches up, the next level to watch is 3,200, as there are many trapped positions there, making it not so easy to break free. One can enter short positions in batches around 3,050.
Trading Suggestions:
Bitcoin short at 121,500-122,000, target around 119,000-117,000. Stop loss at 122,500.
Ethereum short at 3,050-3,090, target around 2,950-2,850. Stop loss at 3,130.