Thursday: Bitcoin retracement drifts sharply, actually building a strong bottom for a surge

Last night’s market continued to fluctuate and decline intraday, resulting in a significant pullback, with the lowest touching the 78,800 level before stopping to recover. Currently, it has returned to the 79,600 area, showing a pattern of stopping the decline and rebounding.

From a technical perspective, on the four-hour chart, the price plunged and then recovered directly, clearly showing a bullish trap pattern. The bearish side seems to be decreasing with increased volume, but it’s actually a false move. The current stage is a consolidation after recovery. Although there is some retracement demand on smaller timeframes, the recovery sentiment is quite clear.

On the one-hour chart, the trading channel has narrowed, and the price has not continued to weaken. There has been some volume transition, and the short-term downward push has stopped. However, during the bullish recovery, there is a certain bottom-building demand, creating a sideways effect.

Today’s strategy is to focus on bullishness at low levels:

For trading, I personally suggest buying around 79,000-79,500, targeting 80,000-80,500.