Bitcoin Market Analysis and Trading Strategy: On Wednesday, Opportunities and Risks in the Fluctuating Adjustment

Looking back at yesterday, the Bitcoin market once again staged a thrilling decline. The price plummeted from the position of 92,500 to 86,000, with a daily drop of up to 6,500 points. In just the first two trading days of the week, Bitcoin has accumulated a decline of over 10,000 points. Although there is currently no obvious support level from a long-term perspective, we must remain rational and analyze cautiously in the face of such extreme market conditions.

From the observation of the early morning trend, when the coin price reached the 86,000 area, the speed of decline significantly slowed down and presented a corrective pattern. In the 4-hour candlestick chart, there had been a series of consecutive large bearish candlesticks, but this morning finally saw two small bullish candlesticks. However, these two small bullish candlesticks did not break through the previous cross bearish candlestick, indicating that although the bearish strength in the market has weakened, the bullish counterattack still faces significant resistance.

From the analysis of the 1-hour chart, viewing it from the perspective of a fluctuating market, the 30-day moving average is exerting strong pressure on the price, with the upper pressure level at 90,000 and the lower support level at 86,000. In the short term, the price fluctuations can be viewed as operating within this range. However, it is important to note that there is still a possibility of Bitcoin continuing to decline today.

Around 89,000, we can continue to position for short positions and enter the market to short. If there are no signs of a slowdown in the declining market, then today we should continue to focus on the strategy of shorting in segments.

Short Position Strategy: When the Bitcoin price reaches 89,000, decisively short. Set the stop-loss at 90,000, with a target price aimed at 87,000.

Long Position Strategy: When the price falls to 87,000 and shows signs of stopping the decline, take a long position. Set the stop-loss at 86,000, with the target price at 88,500. This strategy is based on the potential price rebound that may be triggered by the support level below, capturing the profit opportunities brought by the rebound market by going long near the support level.