Wednesday Morning Thoughts on 7.23: Short
Overnight, Bitcoin broke through $120,000 again, but failed to form an effective continuation, overall showing a slow upward trend.
From the current perspective, Bitcoin is speeding up its ascent, eager to break the current
fluctuation pattern, but there are also significant risks. Currently, the four-hour chart shows
upward movement with decreasing volume. After several days of various fluctuations, the main forces
have gained a high level of control, and there are still suspicions of a false rally. From the hourly chart, the k-line alternates between bullish and bearish, operating around the $120,000 level, with momentum already depleted, making it difficult to continue extending upward. It is expected that Bitcoin will still follow a corrective route, so our morning thoughts remain unchanged, continuing to look for opportunities to short.
Although the current price is at a high level, it has not yet stabilized above $120,000, so chasing the high is not advisable. Intraday operations can first look for a retracement, and after the correction is in place, then plan for long positions.
Morning suggestion: Short around $120,000-$120,500, with a target towards the $118,000-$117,000 range.
