Although the price of the cryptocurrency has rapidly dropped from 109,000 to around 107,000, it is currently stabilizing around 107,300, releasing some positive signals. There is strong support in the 107,000 area, combined with the RSI nearing the oversold turning point, suggesting that short-term selling pressure may have been fully released. If the sentiment in the US stock market improves, the cryptocurrency price is expected to test the 108,000-109,000 resistance area again, and a breakthrough could confirm the continuation of the trend.
Aggressive traders can attempt to go long with a small position, setting a stop loss below 106,500, targeting above 108,500. Caution is advised for any secondary bottoming triggered by fluctuations in the US stock market; if it falls below 106,800, a careful wait-and-see approach is necessary. Overall, the pullback has not damaged the upward structure; if it stabilizes above 108,000, it may accelerate upward. Conservative traders may wait for a confirmation of the breakout before following up, paying close attention to market sentiment and volume coordination in the short term.
