【Market Observation】

Bitcoin dropped sharply this afternoon to around 89588 and is currently hovering in a weak pattern. From the 4-hour chart, the market shows continuous bearish candles probing downward, and the Bollinger Bands are significantly widened with the upper and lower bands continuously extending outward. Although price showed a retracement bounce after breaking below the lower band, this bounce momentum is clearly insufficient, with bears maintaining overall control.

The 1-hour level details are more evident—BTC is running in a standard downtrend channel. Since this afternoon's sell-off, the KDJ three lines are all pinned at low levels with no movement, and haven't even formed a golden cross yet; the RSI three lines are tightly compressed below 40, not even entering the oversold zone yet, indicating there's theoretical downside room. The MACD is even more straightforward, with both DIF and DEA below the zero line, and the negative values continuing to widen, showing no signs of weakening in the downtrend.

【Key Focus Points】

The most critical factor now is whether price can effectively break through the mid-band resistance. If the retracement fails to hold above the mid-band, it will basically continue testing the support zone of 89000-88500. Conversely, if price unexpectedly breaks above the mid-band, the market could enter a repair consolidation mode.

【Trading Strategy】

Evening outlook: maintain bias toward short rebounds, closely monitoring performance at resistance levels.

BTC: Consider shorting around 90500, targeting 89000
ETH: Consider shorting around 3130, targeting 3020

Trade with the trend, don't chase or rush.