How to respond to non-farm payrolls on Friday night?
Yesterday evening's analysis was also very thorough, stating that after the rebound in the US market, we should continue to look for downward trends, and provided a strategy to short Bitcoin at 90600 with a light position, aiming for below 87800. The market's movements were very much in line with our expected targets, accurately hitting our profit-taking level.
Note: The trades I provide are all meant to be light positions, leaving room for additional purchases. Friends who strictly follow this can easily achieve a profit margin of 2000+!
Market analysis: Looking at the daily chart of Bitcoin, after yesterday's close with a doji candle, the market opened this morning with a rebound testing the middle track area but did not continue upwards, instead facing resistance and falling back to the MA200 area where it received support and rebounded. Currently, the K-line has a lower shadow testing the 7-day moving average. The Bollinger Bands continue to maintain a narrowing and flat trend, and the short-term moving averages are turning upwards. The MACD fast and slow lines are crossing upwards at a low position with slightly increasing volume, and the KDJ is showing signs of turning down near the 80 value while the VR indicator is consolidating near the 70 value.
Looking at the 4-hour chart, after the morning's plunge that closed with a large bearish candle, the K-line subsequently rose above the 60-day moving average. Currently, the market is above the middle track and facing resistance from the 7-day moving average. The Bollinger Bands show signs of narrowing and moving upwards, while the short-term moving averages are turning downwards. The MACD fast and slow lines are crossing downwards above the 0-axis with decreasing volume, and the KDJ is turning upwards while the VR indicator is consolidating near the 60 value.
Overall, after the sharp decline, the market quickly recovered most of the losses. However, the resistance at the daily chart's middle track and the 30-day moving average is the key area to focus on today. The 4-hour K-line has formed a fluctuating triangle pattern, and we should pay attention to the breakout of the upper and lower trendlines in the short term. With news expected to land tonight, it is anticipated that there will be considerable washout actions, so we should approach short-term trades cautiously.
Specific operational suggestions can reference a light short position near Bitcoin 90000, looking for a space of 1000-1600 points. After failing to extend below, we can consider entering again!
