Uncle Feng's Bearish Market Analysis Strategy for BTC in the Early Morning

The cryptocurrency market is frequently volatile, and the bearish trend of BTC during the early morning hours is particularly noteworthy. Below, we provide a rational reference from three aspects: market conditions, reasons, and strategies.

1. Market Overview

Recently, after a surge, BTC entered a correction phase, with a noticeable decline during the early morning hours. Taking [specific date] as an example, the price dropped from [X] USD to [X] USD within a few hours, a decrease of [X]%, indicating a clear short-term downward trend.

2. Core Reasons for Bearishness

• Profit-taking: The previous rise accumulated a large number of profitable positions, and during the low liquidity of the early morning, some investors chose to cash out, exacerbating the price decline.

• Technical Signals: Technical indicators such as the death cross of moving averages and RSI entering the overbought zone signal a demand for short-term adjustments.

• Macroeconomic Sentiment Impact: Fluctuations in global economic data and changes in monetary policy expectations indirectly lead to a temporary withdrawal of some funds from the crypto market.

3. Scenario-based Strategy Suggestions

1. Short-term Operations: If trading short-term, you may consider lightly shorting, but strict stop-loss measures are required (e.g., stop-loss if rebounding to [X] USD) to avoid the risk of chasing losses.

2. Long-term Holding: There is no need to overly worry about short-term fluctuations; if the price corrects to key support levels, consider buying in small amounts at lower prices to average down costs.

3. General Principles: Whether short-term or long-term, position control and diversification of investments are necessary to avoid being swayed by emotional fluctuations in the early morning market.

Uncle Feng is looking to short around 108500−10900, targeting 107100−105500.

Market ups and downs are normal; rational analysis and effective risk control are essential to seize opportunities more steadily amid volatility. Wishing all investors smooth operations! #BTC☀