Wednesday Afternoon BTC Trend Analysis and Trading Suggestions
Technical Analysis
- Daily Level: The Bollinger Bands are opening upward, and the price has touched the upper band before experiencing selling pressure and closing with a large bearish candle, indicating strong selling pressure above. The short-term trend is leaning towards a pullback, with the primary support to watch below at MA10 (around 115500). If this level is breached, further downward space is expected to open up.
- 4-Hour Level: Previously, the price continuously broke through prior highs, with both the daily and 4-hour MACD running above the zero line (bullish zone). However, in the current 4-hour chart, the DIF and DEA are gradually converging, and the momentum bars are shrinking, indicating a weakening of bullish strength, further confirming the demand for a short-term pullback.
Trading Suggestions
- Short Position Strategy:
- If the price encounters resistance and does not break through the range of 118500-119000, a short position can be initiated.
- If the above range is broken, wait for a resistance around 120000 before considering entering a short position.
- Long Position Strategy:
- If there is a short-term pullback to the range of 115000-115500 and the support holds, a small position can be tried to go long.
- If this range is breached, wait for a stabilization near 114000 before considering long opportunities.
(Note: Trading must strictly set profit-taking and stop-loss levels to guard against unexpected risks) $BTC $ETH