May 19 Morning Analysis

Bitcoin previously surged to around 78,560 and faced resistance, with increased volume breaking below the middle band support of the Bollinger Bands, which opened downward simultaneously. The middle band has turned into a strong resistance level. Currently, the price continues to operate below the middle band, and the bearish trend structure remains solid.

Although the KDJ indicator shows a slight rebound and correction in the short term, the J value surged but lacks sufficient upward momentum, indicating a technical rebound within a downtrend rather than a trend reversal signal. The area around 77,800–78,000 faces obvious resistance, with weak rebound volume, and the bulls are unable to recover key moving averages and the Bollinger middle band.

The support around 76,548 has been tested. If the rebound is blocked, bearish forces will be released again, and the price is likely to continue downward, further probing the lower Bollinger Band near 76,200, or even hitting new lows for the phase. Overall, the current rebound is a continuation within a downtrend, and the trend remains unchanged. Trading should focus on shorting at rallies, with caution for the risk of continued weakness.

Trading suggestion: 77,500–78,000 short, target 75,500–76,000.