Bitcoin long positions Liquidity clearing downtrend line trading strategy

Core logic and trend judgment

• Long positions liquidity not fully cleared: some long positions around 107,000 USD have been cleared, but the remaining liquidity may trigger fluctuations, caution is needed for rebound traps;

• Downtrend line resistance: The hourly downtrend line has been broken but not effectively reclaimed, turning into a resistance level. Before stabilizing, focus on "shorting during rebounds, with short longs as a supplement."

Key levels trading strategy

• Long positions conditions:

1. Volume breakout at $107,743 → right side long positions (short long), target $108,210 → $108,621, stop loss on breakout;

2. 107190 US dollars fake breakdown recovery → light positions to try long, stop loss at 106370 US dollars.

• Short Selling Conditions:

1. When the volume breaks below 107,470 USD → short on the right side, target 107,211 → 106,315 USD, recover stop loss;

2. $108,621 shows a 2B false breakout → take a small short position, stop loss at $109,120.

Technical Patterns and Trend Line Analysis

• Downtrend resistance line: The current resistance level is at $108,264. To reclaim this line, a stable hourly closing price is required; otherwise, the bearish structure will be maintained.

• Breakthrough effectiveness: A hourly breakthrough of $108,210 requires a 30% increase in trading volume; otherwise, it is considered a weak rebound, providing an opportunity to short.

Multi-period technical indicators reminder

• hourly level:

◦ Stand firm at $108,210 → look up to $108,621 → $109,067, if it fails, then return to oscillation;

Under the pressure of the downward trend line, the rebound height is limited; avoid chasing highs.

• 4-hour level:

◦ 107383 USD breaks down → tests 106346 → 105186 USD, accelerates the pullback after breaking.

trading discipline and risk control

• Trendline priority: Before recovering the descending trendline, long positions should only be short-term, and profits should be realized in a timely manner, without a fixed pattern;

• Support level defense: $106,315 is a solid entry point for long positions, with a stop loss below $105,186, suitable for risk-averse investors;

• Fake breakout response: After the 2B fake breakout signal appears, short positions should set a stop loss at 109120 dollars to prevent trend reversal.

Summary

Bitcoin is currently under pressure from the descending trend line, and the incomplete clearing of long positions liquidity has led to oscillation risks. Core operation: short at the resistance level of the trend line on the rebound, lightly long at the support level, control risks with stop-loss, and wait for the trend line to recover or the support to break before determining the direction.