$BTC Market Analysis and Trading Suggestions
Current Trend:
Bitcoin price rose to around 110600 before retreating, currently hovering at the high level of 109600, with momentum weakening. As analyzed yesterday, there are clear signs of capital outflow; this round of increase is mainly driven by futures, with insufficient spot momentum, making the market foundation not solid enough. Additionally, with the crucial CPI data coming tonight, it is advised to remain cautious and wait for more stable signals.
📊 **Technical Observations**:
- A **double top structure** has appeared on a smaller time frame, leading many to be bearish; however, considering the liquidation map data, there is still significant liquidity at the upper level of 115000, so caution is advised when shorting.
- The **Bollinger Bands** are narrowing, the midline is flattening, and the market is entering a consolidation phase, increasing the contest between bulls and bears.
- **Key Resistance Level**: 110300 has been tested multiple times without breaking through, showing weakness in upward momentum; short-term adjustments have not yet ended, making a bearish outlook more prudent.
Trading Suggestions:
Conservative Strategy: Lightly short near 109800, and exit if a new high on a smaller time frame is broken or set a small stop loss.
- Risk Warning: Significant liquidity at the upper level of 115000; beware of extreme market conditions and strictly control your position size!
