🔥【Bitcoin 4-hour RSI drops to 14.2: Extreme oversold signal triggered, rebound imminent】
This is a rare market alert. The RSI indicator for Bitcoin's 4-hour chart has dropped to 14.2, entering a historically extreme oversold zone. Past experience indicates that when such signals appear, the probability of a significant technical rebound in price sharply increases. The current price is hovering around 88,316, at a critical decision point.
Core Logic
The current market presents a clear multi-cycle contradiction: the 4-hour cycle is extremely oversold (RSI 14.2), indicating a strong intrinsic demand for correction; while the daily chart overall maintains an upward trend. This provides us with a high risk-reward opportunity to play for a rebound towards the next resistance level in the support area of smaller cycles.
Key Price Levels
· Current Price: 88,316
· Recent Support: 86,846 (1-hour level)
· Recent Resistance: 89,426 (1-hour level) | 90,375 (4-hour level)
· Core Defense Line: 84,456 (4-hour level strong support)
Trading Plan: Buy on dips to play for a rebound
1. Direction: Buy on dips
2. Ideal Entry Range: 87,000 – 87,500
3. Stop Loss Setting: 86,300 (placed below key support)
4. Profit Targets:
· First Target: 89,400 (near 1-hour resistance, can partially reduce position)
· Second Target: 90,300 (near 4-hour resistance)
5. Position Size and Risk: It is recommended to invest 1-2% of total funds, ensuring that a single loss is strictly controlled within 1% of total funds.
Key Points and Risk Control
· Patience for Entry: Be sure to wait for the price to enter the 87,000-87,500 range, and show a bullish signal of stabilization on the 15-minute level (such as a pin bar, bullish engulfing) before taking action.
· Stop Loss Discipline: 86,300 is the "lifeline" of this trading plan; if it breaks, it means the technical structure weakens, and one must exit unconditionally.
· Profit Protection: When the price reaches the first target of 89,400, it is recommended to move the stop loss to the entry cost price, locking in principal safety, allowing the remaining position to strive for higher potential returns.
Market Outlook
· Rebound Scenario (higher probability): The price finds support in the 87,000 area and tests the 89,400-90,300 resistance zone upwards. This scenario fulfills the trading plan.
· Consolidation Scenario: The price continues to consolidate between 86,800-89,000, trading time for space. If so, attention should be paid to the subsequent breakout direction. #加密市场观察 $BTC
