5.7 Sunday Night Update $BTC : The week has wrapped up, and let’s do a quick recap of the market. It’s been a waterfall-style one-sided drop; Bitcoin plummeted from 74,000 USD at the start of the week to a new low of 59,000 in this bear market. Currently, the price has adjusted over the weekend, recovering to around 62,000 for consolidation. This week’s crash, as I mentioned before, was triggered by breaking key support levels, which typically accompanies a significant market adjustment. With the influence of political dynamics and data, the bears are firmly in charge. Bad news keeps piling up, fueling the downward momentum.
On a larger scale, the weekly chart shows a drop of 15,000 points; while not as drastic as previous declines, this week’s long bearish candlestick indicates that we’re still in a weak structure. After a long lower shadow previously, the market showed signs of recovery, signaling a potential bottom. However, this week’s long bearish candlestick suggests that we haven’t hit the bottom yet and still have room for further retracement.
So, at the current 59,000 level, we’re still not at the bottom—there’s room for further downside. After several consecutive bearish days on the daily chart, we did record a bullish candlestick today, but the intraday rebound is facing resistance at 63,000, which is also a previous key support level. This kind of rebound testing the high is a classic weak structure of top-bottom conversion. The weekend's time-for-space adjustment hasn’t led to a structural shift, and looking at the volume, the current adjustment's volume is still significantly lower than the previous waterfall. Though recent candlesticks show some lower shadow support, the weekly retracement hasn’t seen much correction. After a drop of 15,000 points, the 4,000 point rebound is not a trend change, but rather a bear market rally. Currently, indicators are at some oversold levels, so we need to watch for corrections on those indicators next week.
For next week’s trading strategy, I recommend taking mostly short positions, but also keep an eye on any potential rebounds and the breaking of resistance levels. After Sunday’s test, the market is still under pressure, so we need to keep an eye on whether the volume structure can support further movements. The bottom for Bitcoin currently looks like it could hold in the 55,000 to 58,000 range. In the current market, avoid blindly trying to catch the bottom; focusing on further shorts is still the way to go.
On a larger scale, the weekly chart shows a drop of 15,000 points; while not as drastic as previous declines, this week’s long bearish candlestick indicates that we’re still in a weak structure. After a long lower shadow previously, the market showed signs of recovery, signaling a potential bottom. However, this week’s long bearish candlestick suggests that we haven’t hit the bottom yet and still have room for further retracement.
So, at the current 59,000 level, we’re still not at the bottom—there’s room for further downside. After several consecutive bearish days on the daily chart, we did record a bullish candlestick today, but the intraday rebound is facing resistance at 63,000, which is also a previous key support level. This kind of rebound testing the high is a classic weak structure of top-bottom conversion. The weekend's time-for-space adjustment hasn’t led to a structural shift, and looking at the volume, the current adjustment's volume is still significantly lower than the previous waterfall. Though recent candlesticks show some lower shadow support, the weekly retracement hasn’t seen much correction. After a drop of 15,000 points, the 4,000 point rebound is not a trend change, but rather a bear market rally. Currently, indicators are at some oversold levels, so we need to watch for corrections on those indicators next week.
For next week’s trading strategy, I recommend taking mostly short positions, but also keep an eye on any potential rebounds and the breaking of resistance levels. After Sunday’s test, the market is still under pressure, so we need to keep an eye on whether the volume structure can support further movements. The bottom for Bitcoin currently looks like it could hold in the 55,000 to 58,000 range. In the current market, avoid blindly trying to catch the bottom; focusing on further shorts is still the way to go.