When the candlestick flashes red and green, what you see is not just price fluctuations, but a battlefield of emotions for millions of traders. Newcomers fantasize about financial freedom when breaking previous highs, while veterans are wary of liquidity traps; after three consecutive bearish candles, the panic sellers shout 'going to zero', while hunters wait for the fatal blow of a MACD divergence. What you think is a 'double bottom' could be a trap set by the market makers, the fearful 'death cross' or an algorithm's bait to short. When everyone shouts 'breakout, chase the rise', the market uses a pin bar to teach you to respect probability. Last night, the coin price successfully built a bottom at the key level of 118,500, not continuing the expected downward trend, but instead showing a steady staircase-like rebound. This oscillating upward structure indicates strong market buying support, with the main force effectively digesting short-term selling pressure through a step-like rise, laying a good foundation for the continuation of the subsequent market. After reaching a high of 120,950 in the morning, it has currently retraced to around 120,100, which falls within the normal range of technical adjustment.
From the market perspective, the level of 118,500 has transformed from a resistance level into strong support, with the round number of 120,000 becoming a new dividing line between bulls and bears. The 4-hour timeframe shows a healthy trend of gradually rising lows and continuously moving highs, with trading volume gently expanding, and no obvious signs of selling pressure. If the retracement can find support in the range of 119,500-120,000, the market is expected to continue to explore the resistance area of 122,000-123,000.
Operational suggestions and risk control tips
Investors are advised to consider light positions for long orders near 120,000, while conservative investors may wait for stabilization signals in the 119,500-119,800 range. It is particularly important to note that if the support level of 118,500 is unexpectedly broken, timely stop-loss measures should be taken, as this may indicate a trend reversal.
