Thursday, May 29, 2025

Last night, Bitcoin staged a thrilling game, with the price triggering a strong rebound upon reaching the important support level of 106,700. This price point, as the lower edge of the fluctuation range over the past month, has formed a solid market anchor through three bottom tests. It is worth noting that the bears showed signs of fatigue during this downward probe, as consecutive lower shadow tests failed to effectively break the support, and instead, the market quickly recouped losses after hitting the low. This false breakdown pattern significantly differs from a genuine downward trend.

From the candlestick pattern perspective, the long lower shadow doji during the early morning combined with the subsequent three consecutive bullish candlesticks forms a classic golden needle bottom reversal pattern. Following this, bulls steadily pushed prices up through consecutive small bullish candles, creating a step-like upward structure, indicating strong buying on dips, with each technical pullback being quickly absorbed by the market.

Three Major Bullish Signals in Technical Analysis Resonate

1. Key Breakthrough of Bollinger Bands: In the 6-hour cycle chart, Bitcoin's price strongly broke through the middle line of the Bollinger Bands. This middle line serves as a medium-term bull-bear dividing line, which quickly transforms into dynamic support upon breaking. As time goes by, the support level is steadily rising at a rate of 500 points per day, forming a solid upward channel.

2. Strengthening of Moving Average System: The short-term EMA5 and EMA10 have formed a golden cross and continue to diverge, while the mid-term EMA20 also shows a clear upward turning point. The formation of a three-line bullish arrangement indicates a dual confirmation of short-term and mid-term trends, providing strong support for subsequent price increases.

3. Confirmation of Indicator Signals: The MACD double lines completed a golden cross below the zero axis and quickly rose, with the area of the red bars continuously expanding, showing that bullish momentum is steadily increasing. At the same time, the RSI indicator formed a bottom divergence in the oversold area, combined with the oversold rebound of the Stochastic indicator, multiple technical indicators jointly validate the effectiveness of the bottom reversal.