6.6 Morning Thoughts


Since the non-farm payrolls report was released last night, the market has been in a unilateral downward trend, with prices falling steadily to a low of 590, currently fluctuating around 616.

The four-hour Bollinger Bands are opening downward, and the price is below the lower band, indicating extreme oversold conditions. At the same time, the funding rate has turned negative, showing that market sentiment is extremely pessimistic and there is crowding into short positions. This often means that if the price stops falling and reverses, it can easily trigger a rapid surge due to short squeeze.
Today’s support levels are 595-590 for a rebound, and resistance levels are 630-635 for a short squeeze. In terms of trading, it is recommended to follow the trend and go with the short positions. Overall, caution should be exercised due to the extremely high volatility and significant divergence in the short-term market. It is advisable to wait patiently for key levels before taking action to avoid chasing after quick gains in the $BTC middle of the move.
BTC-0.03%
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