8.20 Early Morning Technical Analysis #BTC #ETH

Reviewing yesterday's market, Bitcoin rebounded to around 116980 in the morning before facing pressure and falling back, oscillating around 115000 in the afternoon, and then making a significant drop to a low of around 113587 in the evening, followed by a slight rebound. Ethereum's movement was in sync with Bitcoin, oscillating upward to around 4386 in the morning before encountering resistance, making a slight rebound in the afternoon, and then breaking below the 4200 mark in the evening, with a low of around 4167. Today, Lao Hu has consistently maintained a firm bearish outlook, with the positioned short on Bitcoin capturing a space of 1900 points, while Ethereum gained 132 points; in other short-term operations, Bitcoin accumulated nearly 2000 points, and Ethereum accumulated 220 points. Although there was a spike that triggered a stop-loss order in the evening, where Bitcoin lost 460 points and Ethereum lost 40 points, these losses are negligible compared to the overall gains.

From the 4-hour level trend, the middle band and lower band are both extending downward, forming a bearish arrangement, continuously suppressing price rebounds. Since the price started its downtrend from the previous high, multiple rebound attempts have encountered resistance and fallen back near the middle band of the Bollinger Bands, with rebound momentum extremely lacking. Overall, the downtrend is clear and strongly dominated by bears; on one hand, no reversal signs have appeared in the bearish structure of the Bollinger Bands; on the other hand, the price continues to probe lower and approaches the lower band support. If this support is effectively breached, further downward space may open up. In the short term, even if a slight rebound occurs, it is likely to be constrained by the middle band of the Bollinger Bands, making it difficult to reverse the current bearish trend rhythm. Subsequently, attention can be focused on the gains and losses of the lower band support.

Operation Suggestions

Bitcoin around 114000—114500 can be shorted, targeting the previous low around 111800.

Ethereum around 4200 can be shorted, targeting 4060.