Morning Thoughts for Wednesday, August 20
Recently, the Bitcoin trend is still under the control of bears, continuing to show weakness and downward movement. Even though there may be occasional small rebounds, it is difficult to reverse the downward trend. After breaking the key support level of 113,000 yesterday, it did not continue to plunge rapidly but instead entered a range of low-level fluctuations—this pattern resembles a bear's "trap for the bulls," superficially providing a buying opportunity while actually hiding the risk of further downward movement. Do not blindly buy in.
The short-term rhythm still leans bearish. Today's strategy suggestions:
Consider short positions near 113,500, initially targeting the 112,000 level (the previous lower range and psychological support level).
If it breaks below 112,000, bears may accelerate their release, and the lower range can be observed between 111,000 and 110,000.
Strict stop-loss measures are essential to guard against sudden market rebounds.
