July 31 Analysis:
Bitcoin continued its rebound momentum, climbing up to a midday high of 118,852 points, after which it entered a sideways range along with Ethereum, which also rose to a midday peak of 3,875 points. Overall, there was a broad upward trend, with Bitcoin and Ethereum reaching highs of 119,100 and 3,878 points respectively; however, neither touched or broke above the resistance levels of 120,000 and 3,940, indicating ongoing pressure.
In the afternoon, Bitcoin's price surged to around 119,800, but bullish momentum showed substantial decay, with the upward trend hitting a phase limit, and the pullback pressure continued to accumulate. From the 4-hour timeframe perspective, the morning's increase failed to sustain effectively, with persistent long upper shadows during the high-range oscillations clearly reflecting that bulls faced significant resistance at high levels, while the buying support below was insufficient. The market has shifted to being dominated by selling pressure, and the trading volume has not effectively expanded, further confirming the weakness in bullish momentum. Bearish forces are gradually returning and taking control of the market, confirming a short-term pullback trend. Under the contracted state of the Bollinger Bands, short-term moving averages continue to operate around the midline. The MACD fast and slow lines crossed above the zero axis, with the volume bars turning red and expanding. The KDJ crossed upward, with attention needed on the resistance near the 100 value. The VR indicator is consolidating around the 80 value, with the current market increasingly characterized by bearish dominance, confirming the short-term pullback trend.
From a technical analysis standpoint, Bitcoin's daily level continues to close with a bearish candlestick around 117,800. The Bollinger Bands have started to run flat, and the MACD moving averages continue to trend downward, while bearish volume continues to expand. The KDJ has begun to move upward. In the 4-hour timeframe, the Bollinger Bands are starting to contract, the MACD moving averages are beginning to trend upward, and bullish volume is showing slight expansion, with the KDJ line moving upward.
Ethereum's daily level closed with a doji bullish candlestick around 3,800. The Bollinger Bands continue to contract upward, and the MACD moving averages are trending downward, with bearish volume continuing to expand. The KDJ line remains downward. In the 4-hour timeframe, the Bollinger Bands are running flat, while the MACD moving averages are beginning to trend upward, and bullish volume is starting to expand, with the KDJ line starting to move upward. For Ethereum, short-term resistance above focuses on the breakout situation just above the upper band of the previous high; if broken, watch for resistance below 4,000, while support continues to focus on the band above 3,700.
Big Cake: Short between 118,600-119,200, target around 117,000; Second Cake: Short between 3,800 to 3,830, target around 3,720.
$BTC $ETH
