Wednesday morning Bitcoin outlook for 5.6: do not chase longs at high levels, look for shorts intraday

The May Day holiday has come to a successful end, and next is a new journey. Wishing everyone good luck. Since this month, the market has gradually warmed up, with Bitcoin slowly rising, currently reaching around 817 at its highest. Although short-term traders find it hard to endure, each time it spikes higher, there is room for a pullback. Therefore, shorts are not just passively taking hits; with proper control, they can also harvest good results.

Today, overnight multiple attempts to probe higher, short-term resistance has been repeatedly broken, but without substantial strength. Such a rebound is not yet enough to form a strong unilateral trend. Since touching bottom at 749 on the four-hour chart, it has been steadily rising, with short-term strong upward momentum. Notably, the lower KDJ indicator in the attached chart has entered the overbought zone and is showing signs of turning. So, at this point, there's no need to over chase the rally. Intraday, watch for a pullback; after finding support, look for more longs.

In the morning, consider short positions in batches around 813 and 817, targeting the 800-790 area. If it continues downward, extend the position further on the decline.