The afternoon market has entered a stage of momentum exhaustion, but the overall trend has not undergone a fundamental change. In the morning session, we suggested establishing short positions based on the rebound. After the market peaked at 86577, it faced pressure and fell back, with short positions entered near 86400 gaining over 1000 points; Ethereum was also given an entry point, which was based on the trend structure and price formation for a trend-following layout.
From the 4-hour cycle observation, Bitcoin recently broke through previous highs with a large bullish candle and then slightly retraced, entering a high-level consolidation phase. The candlestick chart shows a narrow oscillation pattern of alternating bullish and bearish candles, with no deep pullbacks during this period, indicating that the bulls are still dominating the market trend. This consolidation structure can be viewed as a continuation pattern in an upward trend, with the overall upward framework remaining intact. It is expected that after the consolidation ends, the price is likely to attack previous highs again. Switching to the 1-hour cycle, the price continues to consolidate horizontally near the upper Bollinger Band, while the Bollinger Band channel gradually narrows, and market volatility significantly decreases. This technical formation usually indicates that the market is about to experience a directional breakout. In terms of operations, it is recommended to continue the bullish trend-following mindset and to establish long positions in batches based on the key support areas below.
Bitcoin: Establish long positions near 86000, target focus on 87500
Ethereum: Establish long positions near 2900, target focus on 3050
