Support Level
From the Bollinger Bands indicator, the lower band is currently at 4241.11 USDT, which is an important short-term support level. Additionally, during the previous price decline, a local low was formed around 4224.10 USDT, which can also serve as a support reference. If the price continues to fall, attention can be paid to the support strength at the integer level of 4200 USDT.
Resistance Level
The upper band of the Bollinger Bands is currently at 4386.66 USDT, which is an important resistance level in the short term. Moreover, during the previous price rebound, a high was formed around 4574.95 USDT; if the price rises, this level will be a strong resistance reference. Between these two levels, the integer level of 4400 USDT may also become a psychological resistance point during the price rise.
Strategy Ideas
1. Range Trading Strategy: Given the current market lacks a clear trend, the price is likely to oscillate between support and resistance levels. A high sell low buy range trading strategy can be adopted, attempting to buy near the support level and sell near the resistance level.
2. Trend Confirmation Strategy: Wait for the price to effectively break through the support or resistance level, confirming the trend before entering the market. For example, if the price effectively breaks above the upper band of the Bollinger Bands, a long position can be taken; if the price effectively breaks below the lower band, a short position can be taken. An effective break can be defined as the closing price being outside the breakout level for several consecutive periods (e.g., 2-3 four-hour periods).
Long Position Suggestions
Condition 1: When the price falls back to the support range of 4241.11 - 4224.10 USDT, and there is a clear signal of a stop loss (such as forming a hammer candle or morning star candle patterns), a light position can be attempted for a long trade, targeting the middle of the Bollinger Bands (4313.89 USDT), with a stop loss set below the support range (e.g., 4200 USDT).
Condition 2: If the price effectively breaks above the upper band of the Bollinger Bands at 4386.66 USDT, a long position can be pursued, targeting 4500 - 4574.95 USDT, with a stop loss set below the upper band (e.g., 4360 USDT).
2. Short Position Suggestions
Condition 1: When the price rebounds to the resistance range of 4386.66 - 4400 USDT, and there is a sign of stagnation (such as shooting star or evening star candle patterns), a light position can be attempted for a short trade, targeting the middle band of the Bollinger Bands, with a stop loss set above the resistance range (e.g., 4420 USDT).
Condition 2: If the price effectively breaks below the lower band of the Bollinger Bands at 4241.11 USDT, a short position can be pursued, targeting 4200 - 4100 USDT, with a stop loss set above the lower band (e.g., 4260 USDT).
