The US President earlier emphasized at a White House press conference that comprehensive tariffs on imports from Canada and Mexico will take effect as scheduled after a one-month delay, leading to risk-averse sentiment in the market. Meanwhile, due to the continuous decline of Nasdaq futures in tech stocks and the strengthening of the yen driven by expectations of interest rate hikes by the Bank of Japan, concerns over risk aversion have arisen. As a result, Bitcoin began a new wave of decline around 6 AM today, plummeting to around $90,850 by 8 AM, marking a new low since January 13. Ethereum also followed suit, with a quote of $87,812 at the time of writing, down nearly 3.84% in the past 24 hours.
Bitcoin four-hour chart
First, according to the Bollinger Bands indicator in the 4H Bitcoin chart, the market is showing a clear bearish trend, with the middle band continuously declining, reflecting the overall market trend. Recently, the price has not only broken through the lower band but has also moved downward at a rapid pace, showing significant downward pressure on the market. Meanwhile, the contraction of the Bollinger Bands indicates that market volatility may increase. As the price further explores lower levels, volatility may further intensify.
Secondly, according to the KDJ indicator in the 4H Bitcoin chart, both the K line and the D line are in the oversold zone, indicating that the market is currently at relatively low price levels. Notably, the K line is crossing above the D line, suggesting a possible short-term rebound signal. Additionally, although the J line is in the negative zone, showing significant downward pressure on the market, the golden cross pattern of the KDJ indicator provides a short-term rebound opportunity. This signal may indicate that the market is about to experience a short-term price recovery.
Finally, according to the MACD indicator in the 4H Bitcoin chart, both the DIF line and the DEA line are operating below the 0 axis and are continuously showing a downward divergence trend, indicating that the bearish trend continues to dominate the market. Meanwhile, the green histogram of the MACD is continually increasing, which further validates the market's downward trend. Unless a significant reversal signal appears, it is advisable not to blindly chase long positions temporarily.
Bitcoin one-hour chart
First, based on the Bollinger Bands indicator in the 1H Bitcoin chart, the middle band is continuously declining, and the price has broken through the lower band, clearly reflecting the bearish trend of the market. At the same time, the contraction of the Bollinger Bands indicates that market volatility is decreasing, but this could also be temporary. As the price continues to decline, volatility may gradually increase, especially as the price approaches the lower band support.
Secondly, according to the KDJ indicator in the 1H Bitcoin chart, both the K line and the D line are currently in the oversold zone below 20, indicating a temporary bearish market with significant selling pressure. However, the K line is trying to cross above the D line, which signals a potential rebound in the short term. Meanwhile, the J line remains in the negative zone, indicating that downward pressure still exists in the market. Overall, the golden cross signal of the KDJ suggests that a slight rebound may occur in the short term.
Finally, according to the MACD indicator in the 1H Bitcoin chart, both the DIF line and the DEA line are operating below the 0 axis and are continuously showing a downward trend, strongly indicating that the bearish trend in the market is very obvious and strong. Meanwhile, the green histogram is gradually increasing, highlighting the dominant position of sellers in the market. Furthermore, there are no signs of the histogram shortening, indicating that selling power may continue to maintain an advantage in the market, and the bearish trend may persist in the short term.
Comprehensive analysis shows that Bitcoin is currently exhibiting a clear bearish trend, with both the Bollinger Bands and MACD indicators indicating strong downward momentum. Although the KDJ shows a rebound signal in the oversold zone, it is highly likely that the bearish trend will continue in the short term.
In summary, Master Xian provides the following suggestion for reference: Short Bitcoin when it rebounds to 89,000-89,300, targeting 87,000, with a stop-loss at 90,000.
Instead of giving you a 100% accurate suggestion, I would rather provide you with a correct mindset and trend. After all, teaching a person to fish is better than giving them fish. Suggestions may help you earn for a moment, but learning the mindset can help you earn for a lifetime! It is essential to focus on the mindset, grasping the trend, and planning your trades and positions. What I can do is use my practical experience to assist everyone, guiding your investment decisions and management in the right direction.
Writing time: (2025-02-25, 18:00)
(Written by - Master Xian says Bitcoin) This is a statement: Online postings have delays, and the above suggestions are for reference only. The author is dedicated to research and analysis in the investment fields of Bitcoin, Ethereum, altcoins, forex, stocks, etc., and has been involved in the financial markets for many years, possessing rich practical operation experience. Investment carries risks, and one must be cautious when entering the market. For more real-time market analysis, please follow Master Xian says Bitcoin for discussions and exchanges.#加密市场回调