In the volatile and opportunity-filled world of cryptocurrency, every price fluctuation feels like the pulse of fate. Some become overnight millionaires here, achieving financial freedom; others leave defeated and disheartened. But true strong individuals are not swayed by momentary ups and downs. Yesterday's market trend showed a downward trajectory, with the intention of the downtrend being quite clear. Bitcoin experienced a cliff-like drop in the early hours, causing the originally range-bound market to plummet straight down from around 114700 to about 110700, a decline of over 4000 points. Ethereum faced a similarly severe situation, with a downward movement of over 200 points in the early hours, laying the foundation for yesterday's overall trend, showing no significant signs of a rebound. During the day, the consistently successful trading strategy on Bitcoin yielded over 3819 points from two short positions! Ethereum also synchronized with three short positions, gaining over 343 points!
Looking at the four-hour chart of Ethereum, the overall price is still in the phase of a pullback after a rapid and significant surge. The price broke through the middle band quickly with a large bearish candle, followed by a small bullish doji that slowed down the price's pullback. The current rebound has not provided substantial space, and the MACD energy histogram on the four-hour level continues to show bearish momentum, indicating that selling pressure is gradually increasing. The Bollinger Bands are narrowing, and all signs suggest that we may face another directional choice in the evening. Overall, combining this with technical analysis, the likelihood of continued pullbacks is considerable. Looking at the short-term hourly chart, after hitting a low, the price formed a bullish engulfing pattern and quickly tested near the middle band. However, after multiple attempts, it failed to effectively break through the resistance at the middle band. The highs and lows on the hourly trend are gradually declining, so our bearish outlook remains unchanged; we will continue to position ourselves with a rebound short strategy.
Trading Suggestions
Bitcoin: Short around 113000 Target: 112000
Ethereum: Short around 4620 Target: 4500
