8.26 Morning Thoughts and Suggestions
This drop in the market has shattered many traders' dreams. However, this aligns with Uncle Zhang's expectations; Bitcoin has indeed broken below 110,000. The current direction is correct; it's just a matter of how much room we have to maneuver. Cautious partners should have already exited, and that's fine. Partners who followed Uncle Zhang made over 3,000 points on Bitcoin and over 200 points on Ethereum. When you think about it, sometimes getting in and profiting is a very simple thing.
Currently, on the 1-hour chart for Bitcoin, the middle band of the Bollinger Bands is still trending downwards. After breaking below the middle band, it has consistently been under pressure below it, indicating that the short-term downtrend is dominating. In the subsequent down phase, there has been a volume release, but the rebound has been weak and lacking in volume, failing to even touch the middle band, highlighting the weakness in support. The lower band of the Bollinger Bands is currently holding but is struggling against the downward pressure from the middle band. If the rebound cannot return to the vicinity of the middle band and effectively break above it, and instead the lower band is lost, the risk of further declines is very high, with an overall technical outlook leaning bearish. Keep your stop-loss in place and continue to push!
Suggestions:
Bitcoin can be traded around 110,800, targeting around 108,000,
Ethereum can be traded around 4,460, targeting around 4,200
