Evening Market Outlook

Bitcoin recently broke below the bearish flag pattern, attempted a rebound to recover the flag range but failed, then formed a bearish engulfing pattern at a key level below. The current market is entering a correction phase.
The short-term key resistance is around 66,885, which is the lower boundary of the original flag pattern; key support levels below are concentrated at the 66,000 neckline and the 65,590 support zone. As long as this zone is not effectively broken downward, the short-term decline is unlikely to further expand. If this support zone is broken, the market will most likely test the previous low near 64,930; if the previous low support fails, the downward space will open up, with the possibility of testing the 62,000 or even 60,000 level. The judgment should be based on real-time market movements.
For the market to stabilize and stop falling, it must re-enter the flag pattern; to initiate a rebound, an effective breakthrough of the 67,481 resistance level is needed, otherwise the rebound potential will be very limited.
Trading Recommendations
1. Short-term long entries: If Bitcoin breaks through 66,906 with volume, consider going long to catch the rebound.
2. Aggressive short: Short on a break below 66,060 with a stop at 67,287, targeting 65,000-64,162.
3. Conservative short: Wait for a rebound to the 67,889-68,563 zone to enter in batches for a better risk-reward ratio. Currently, chasing short directly has limited value; only a break below 65,000 would provide enough downside space. Be sure to strictly set stop-losses.
Key Level Points
• 1-hour timeframe: Hold above 66,906; if the price rises, look for 67,887-68,836. Failure to break through indicates an invalid upward move.
• 4-hour timeframe: Break below 66,199; look for 64,924-63,815 below.