Midnight Analysis of Bitcoin on 7.16
Currently, the hourly level DIF and DEA are still in a dead cross state. Although the green bars have slightly shortened, there is clearly no reversal strength, and they are still below the middle band of the Bollinger Bands. This means that this rebound is more like a technical correction rather than a trend reversal. From the current trend, the rebound power is very weak, and there is a risk of continuing downward at any time.
The KDJ three lines are entangled, with the J value slightly increasing but not breaking through 50. This indicates that there is indeed some struggle in the short term, but it is just a fluctuation, and no obvious strengthening is seen. The market lacks directional sense, and it is highly likely to continue to dip.
In plain terms, Bitcoin is currently in a state of weak rebound. The bulls cannot provide confidence, and the bears are not in a hurry to sell off, but overall it is still weakening. In this situation, Xiaozhuge would rather test the waters with short positions than take risks with long ones.
Personal suggestion
Short Bitcoin around 117500-118000, looking down at 116000-115000, and still looking at 108000 in the long term!
