7.21 Bitcoin Morning Market Analysis

Just as the analysis was finished, Bitcoin suddenly surged violently, disrupting all data. It has now broken below the recent low, and there are signs of a technical divergence adjustment.

Daily K-line Dimension

The highest point reached around 1188, showing a top divergence pattern in the market. There is a strong suspicion that the main force is raising prices to sell off; it might be worth attempting to set up short positions at high levels.

MACD indicator verification: under the background of top divergence, the volume has significantly decreased, and DIF and DEA are contracting at high levels; in terms of Bollinger Bands, the upper band has moved up to 1236 and the middle band to 1140. The current high-level consolidation continues, and we need to be wary of the risk of a “waterfall-style” drop.

Four-hour K-line Dimension

The fifth wave is approaching the top resistance level, with MACD decreasing in volume. After DIF and DEA fell below the 0 axis, there is a trend towards a golden cross; Bollinger Bands are extremely consolidated, and the K-line has risen from the lower band of 1170, breaking through the middle band. One can try back-and-forth operations within the Bollinger Bands range.

Operational Suggestions

Establish short positions as Bitcoin rebounds to the range of 117800-118500, targeting down towards 116500 and around 115000.

Please strictly maintain defensive measures.