What's the plan for the intraday chop?
This round of price action hit a resistance zone and printed a long upper shadow candlestick, indicating that the bullish momentum has completely waned. The subsequent bullish candles are seeing shrinking volume, and the buying pressure is quickly fading. The candlestick bodies are narrowing, and selling pressure from shorts is becoming increasingly pronounced. At high levels, we even see a classic bearish candlestick reversal pattern, confirming a high-to-low trend.
From a daily timeframe perspective, the previous bottoming rally has clearly hit a wall, and the upward trend driven by strong bullish candles has been completely halted, putting more pressure on prices to head down again. The four-hour chart signals further resonance: after touching the upper Bollinger Band, prices are facing resistance at high levels, with consecutive bearish candles indicating weakness and increasing selling volume; MACD lines are turning down, and KDJ is forming a death cross at high levels, continuously releasing bearish momentum.
Currently, prices have retraced to just above the previous consolidation zone, where a large amount of trapped positions are stacked up, severely limiting the rebound potential. Considering all market signals, the bearish pattern is clear, and any bounce presents a perfect setup to go short. The general trading strategy remains to short in the key resistance zone of 638-642, targeting down to 625 and 615, with a stop loss set at 650. #BTC
This round of price action hit a resistance zone and printed a long upper shadow candlestick, indicating that the bullish momentum has completely waned. The subsequent bullish candles are seeing shrinking volume, and the buying pressure is quickly fading. The candlestick bodies are narrowing, and selling pressure from shorts is becoming increasingly pronounced. At high levels, we even see a classic bearish candlestick reversal pattern, confirming a high-to-low trend.
From a daily timeframe perspective, the previous bottoming rally has clearly hit a wall, and the upward trend driven by strong bullish candles has been completely halted, putting more pressure on prices to head down again. The four-hour chart signals further resonance: after touching the upper Bollinger Band, prices are facing resistance at high levels, with consecutive bearish candles indicating weakness and increasing selling volume; MACD lines are turning down, and KDJ is forming a death cross at high levels, continuously releasing bearish momentum.
Currently, prices have retraced to just above the previous consolidation zone, where a large amount of trapped positions are stacked up, severely limiting the rebound potential. Considering all market signals, the bearish pattern is clear, and any bounce presents a perfect setup to go short. The general trading strategy remains to short in the key resistance zone of 638-642, targeting down to 625 and 615, with a stop loss set at 650. #BTC