Current BTC is at the end of a converging oscillation in the four-hour cycle. The price has been repeatedly testing around the middle Bollinger Band at 87250, and the narrowing distance between the upper and lower bands indicates that volatility has dropped to a low level. The MACD indicator's two lines are highly glued above the zero axis, and the histogram is approaching zero, indicating a temporary balance of bullish and bearish forces.
The first resistance level above is at the upper Bollinger Band at 88080, which resonates with recent highs. The first support level below is at the lower Bollinger Band at 86615, which coincides with previous lows in the four-hour level. The bullish and bearish watershed can be set at the integer level of 87000.
Clear long signals must meet two conditions: the price must break through the resistance of 88080 with increased volume, and the MACD must form a golden cross above the zero axis. Clear short signals require the price entity to break below the support of 86615, and the MACD must form a death cross and diverge downwards.
Long strategy: Once the price breaks above 88050, a long position can be established in the retracement range of 87600 to 87800, with an initial target at 89500. If momentum is sufficient, look towards the integer level of 90000. The stop loss should be strictly set below 87200.
Short strategy: Once the price breaks below 86500, a short position can be established in the retracement range of 86800 to 87000, with the first target at 85500 and the second target at 85000. The stop loss should be uniformly set above 87200.
Currently, we are at a critical node before a trend change; it is recommended to use one-third of your usual position for testing. If the price continues to oscillate in the range of 86500 to 88000, remain on the sidelines until a breakout occurs. All positions must set stop losses.
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