From the analysis of Bitcoin on the 4-hour chart, the Bollinger Bands show a typical bearish divergence. The price has been oscillating below the middle band and has not effectively broken through it. The middle band is steeply declining, forming direct resistance, while the lower band is flat with no signs of an upward turn. Although there was an upward breach of the middle band previously, it was quickly suppressed by bears, and the price has once again fallen into a downward channel, forming a combination of long upper shadows and declining candles, which validates the heaviness of the selling pressure above. On the daily timeframe, the market is alternating between bullish and bearish candlesticks above the lower band of the Bollinger Bands. Despite the long shadows on both sides of the candlestick bodies, it is clear that the selling pressure above is greater than the support below. The current market is in a state of low-level consolidation, and the trend is likely to continue to focus on the bearish side. From the perspective of trend structure, this oscillating rebound is merely a consolidation after the previous breakdown, representing a bearish 'time for space' correction rather than a trend reversal signal. The weak consolidation below the pressure zone further solidifies the market pattern dominated by bears, so for subsequent operations, Lao Hu suggests continuing to maintain a rebound and short strategy.
Operation Suggestions
Bitcoin 87000—87500 short, target around 85000
