In the morning, there was a wave of price increase. Are the bulls starting to celebrate again? The market has been fluctuating, and since last night, it has been trending downward. Early in the morning, the bears woke up to find profits and shouted "awesome." However, they didn't celebrate for long before realizing the market had surged again, and they were trapped. Damn! If someone had woken up early and chased the shorts around 87,000, they would probably be restless and uncomfortable!
On the daily chart, after testing the middle band resistance on Monday, a long upper shadow bearish doji was formed. Subsequently, from Tuesday to Thursday, the price operated below the middle band, facing continuous pressure. Yesterday, the daily chart formed an inverted hammer bearish candle. Just now, with this wave of price increase, the price suddenly hit the daily chart middle band resistance. Are the bears panicking? There are too many voices in the market predicting a downturn, and with the Western holiday season, the market has been lethargic these days. Suddenly, there was a price surge, which is a typical low-volume increase, clearing out the bears and tempting the bulls. Have they been scared off?
Currently, there isn't much to analyze on the chart. A sudden spike has skewed the indicators, but the structure remains, and the logic for shorting hasn't changed! The market is never about reacting after seeing a drop and then regretting it. When there was a rebound or surge just now, if you didn't dare to short, or if the price dropped and the bears were ready to call it quits, only then did you impulsively chase the shorts! If you're shorting, you need to be clear about where the resistance is. When it reaches the resistance level, if you don't short, then where will you short? If you're going long, then pay attention to each pullback's low points. Identify the levels that have been tested repeatedly without breaking; those are the places to catch the low for a rebound, which naturally increases the success rate!
The short positions at 90,000 and 3,050 given on Monday should undoubtedly be held, and the short positions entered at 85,000 and 2,960 on Thursday can also be held. Don't let temporary floating losses or being trapped affect you. Set a stop-loss that you can accept, and let time take care of the rest! For those without short positions, how should they operate now? First, thinking about betting on a rebound and chasing longs now is clearly not feasible! The sudden surge is like taking a pill; it can hold up for a while and soar, but the effect has a time limit. Once the effect wears off, it will soften again. Are you afraid of chasing the highs? A rebound is an opportunity to short; cherish every chance to rebound, but also don't go all in short right away with your eyes closed!
For Bitcoin, the resistance levels are at 89,500 and 90,500. High shorts should be placed around these levels. The support levels to watch are 88,500, 87,500, and 86,000. For Ethereum, the resistance levels to watch are 2,980, 3,030, and 3,070. Ethereum likes to stir things up, so one must be cautious. The support levels to watch are 2,900, 2,800, and 2,700.
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