Thursday Morning Thoughts on July 31

The market in the early hours has certainly given the bears a chance to celebrate. Following Powell's speech, Bitcoin experienced a significant drop, effortlessly breaking below the 116000 support level, but unfortunately was unable to maintain the momentum. However, our prior short positions have netted us a 2000-point gain, and the market is now rebounding in the 117700 region.

From a technical perspective, the 116000 support below remains strong, and the overall market structure is still within a wide range. On the daily chart, consecutive bearish candles have dropped below the middle band, and all indicators are pointing towards a bearish trend. It is worth noting that the Bollinger Bands are showing a contraction pattern, so until the market breaks through key support and resistance levels, it is advisable not to take a one-sided view, but rather to treat it as a range.

It is recommended to short Bitcoin near 118000-118500 and watch the 117000-116000 area; if it doesn't extend lower, consider reversing to long.