4.1 Double Bottom Analysis



The double bottom is currently trading below the middle band of the Bollinger Bands at 2074, in a high-level consolidation phase. Technically, the price is between the middle band and the lower band at 2016, with short-term bears dominating and a clear need for a pullback. The upper band at 2133 acts as a strong short-term resistance. Although the medium-term moving averages remain in a bullish alignment and the overall trend has not been broken, short-term momentum has significantly weakened. Currently, it is at a critical juncture; without a clear breakout direction, wait for a breakout of the range before taking action to avoid chasing highs or selling lows.

The movement of the double bottom is linked to the main trend. In the short term, due to ETF fund outflows and cautious market sentiment, volatility has increased. However, in the medium to long term, supported by ecosystem development and technological upgrades, the fundamentals remain solid. Trading should strictly control position sizes, focus on key level signals, and follow the trend.

Trading suggestion: 2120-2150 range, target 2050-2000.
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