April 29 Midday Analysis | Market sentiment turns bearish, and the rebound is the time to set up defensive short positions

The market is showing clear technical weakness signals. We need to shift our thinking from range-bound movement to following the trend by looking to sell, and treat the rebound as an entry opportunity after resistance is tested.

Key signal breakdown:

• Structural breakdown: The 1-hour timeframe has effectively broken below the previous consolidation range, switching to a downward channel. The rebound volume during this period is insufficient, which is defined as a technical correction.

• Momentum exhaustion: On the 4-hour timeframe, price remains constrained by the Bollinger upper band and key moving average pressure. The box/range’s center of gravity shifts lower, indicating buying power is drying up.

• Trading definition: The current “short at the highs” is not a contrarian call to pick the top. Instead, it’s a strategy aligned with the established smaller-cycle downtrend.

Specific trading references (risk warning: set strict stop-losses):

• BTC: If the price rebounds to the 77,800 resistance area, consider initiating a short position with a light allocation. Watch support below at 76,800; if it breaks, downside room can be further extended to 75,800.

• ETH: If the price rebounds to the 2350 resistance area, consider following through with a short. Watch support below at 2300 and 2250.$BTC $GT $ETH