Bitcoin View: Reference 4H, 1H
Review: Yesterday, after being blocked at the 0.618 rebound position, a short position was made at 708, which can be considered a left-side trade. Although there was no clear short signal, the U.S. stock market opened with a drop and then rebounded, hitting the breakeven stop loss.
Returning to the candlestick chart: From the 4-hour candlestick chart, we can clearly see that there is a resistance level in the 710-715 range. After touching this range twice yesterday, it sharply dropped, but the downward momentum was not strong. It is still in a high-level consolidation and oscillation pattern. The bullish structure in the short-term time frame has not been completely destroyed.
Looking at this segment of the market from the 1-hour level, the 691-694 range is the bullish structure of this segment. Once it is broken, there is a possibility of a direct acceleration downwards. Therefore, those who want to short can wait to see if it will break down in the evening.
Shorting Strategy: If it breaks below the 691-694 range and then rebounds back up to face resistance, then a short position can be entered, with an initial target of 680. If it continues to break down, hold on; if it holds, then exit directly.
The currently strong support is the 0.618 retracement of this segment, so shorting should also consider this position, $BTC
