Last night, the price of Bitcoin rose significantly, reaching around 84,500, which coincidentally touched the 4-hour mid-level resistance. In technical analysis, mid-level resistance often exerts strong pressure on price increases. Bitcoin showed signs of breaking through and retesting at this level, which has important market significance. The breakthrough indicates that bullish forces have attempted to break through resistance and explore new price ranges; while the retest is a validation of the effectiveness of the breakout, confirming whether the market truly has the momentum for further increases.

Technical Analysis

1. Resistance and Support Level Analysis: Currently, the 4-hour mid-level resistance at around 84,500 has experienced a breakthrough and retest. Although it has not been able to effectively hold, the impact of bullish forces should not be underestimated. The price level of 83,770 is in a relatively stable area after the breakout and retest, serving as a reference point for bullish entry. The upper baseline resistance of the downward channel at 86,283 is an important checkpoint for price increases. A successful breakthrough would open up a broader upward space for Bitcoin. From a 4-hour structure perspective, 80,731 is a key support level. If it breaks down, it could trigger a trend reversal; as long as this support level remains solid, the market still has an upward basis.

2. Wave Theory Analysis: According to wave theory, as long as Bitcoin's current trend does not fall below 80,731, it has the potential to form an upward impulse wave. An upward impulse wave typically consists of 5 waves, with waves 1, 3, and 5 being the rising waves, and waves 2 and 4 being the corrective waves. If the current trend aligns with the upward impulse wave pattern, it means that the price of Bitcoin will show a gradual upward trend, with each pullback being a buying opportunity, and the subsequent peaks of the upward waves likely to be continuously refreshed.

Trading Strategy

1. Entry Strategy: It is recommended to establish long positions near 83,770. This price level is relatively safe after the breakthrough and retest, effectively controlling entry risk.

2. Take Profit Strategy: Set the take profit level near 86,283. When the price reaches this resistance level, if it encounters resistance and falls back, profits can be realized promptly; if successfully broken through, the take profit level can be adjusted upwards to gain greater profits.

3. Stop Loss Strategy: To prevent risks from unexpected price declines, the stop loss level can be set a certain distance below 80,731, such as 80,000. Once the price falls below the stop loss level, it should be decisively closed to avoid further losses.