4.7 Afternoon Thoughts

After the morning plunge of Bitcoin to the 77,000 level, the market welcomed a slight rebound, with the price peaking at around 79,300 before facing resistance and falling back. Currently, the price has returned to around 78,000, showing signs of consolidation. Ethereum mirrored Bitcoin's movements, with the morning price dropping to around 1,535 before experiencing a slight rebound, reaching around 1,610 before facing resistance and retreating. During the morning rebound, we strategically placed short positions, and we are still in profit; those who entered short positions at high levels can continue to hold.

From the current market perspective, the daily closing point experienced a slight rebound, providing a certain lower shadow. The closing point is around 78,300, while the morning rebound appeared somewhat weak, with the highest point recovering near the lower band, facing resistance that shifted the trend towards bearishness, leading to a market pullback. However, the price did not further decline to test the support at the 77,000 level. On the 4-hour chart, the current candlestick pattern shows that the upper shadow of the candlestick is under pressure at the lower band, and there is no short-term upward momentum. Thus, the market is likely to consolidate at the bottom to correct the current Bollinger Bands, indicating that the price may stabilize further at the 70,000 level. Therefore, for our short-term trading today, without any favorable news announcements, the area above 79,000 remains our most bearish range.

Bitcoin can be shorted in the 78,700-79,200 range, with a break below 77,000 leading to a target of 75,000. Ethereum can be shorted in the 1,590-1,610 range, with a target near 1,450.

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