The current cryptocurrency market has entered a critical rebound verification stage, with the bullish and bearish dividing line for Bitcoin clearly locked at $63,400. This level is not only a previous area of concentrated trading but also an important resistance level in this round of decline. If a volume-supported breakout can be achieved, it will officially declare the end of the short-term downtrend, and the price is expected to quickly rebound to the second resistance level at $65,400.

Ethereum's movement is highly correlated with Bitcoin, with a key breakout level at $1,700. Once it stabilizes above this level, the first target above at $1,764 will be within reach. From a technical perspective, the four-hour head and shoulders bottom pattern has basically taken shape, with the right shoulder completed. As long as Bitcoin holds the neckline support at $62,500, this rebound rally is likely to continue until this Friday.

In terms of trading strategy, it is strongly recommended to abandon unilateral thinking and flexibly switch between bullish and bearish positions based on market changes. All trades must set stop-losses to avoid holding onto positions blindly. If there is a pullback to $61,700 during trading, as long as the price quickly recovers above $62,500 afterward, it can be considered a second entry opportunity, continuing to look higher.

It is particularly important to note that this rebound is essentially a technical correction within a still-downward trend, and the long-term trend has not fundamentally changed. After the rebound ends, around $55,800 will be an excellent long-term entry point for long positions.