Bitcoin Evening Technical Analysis

Looking at the candlestick chart, the hourly chart of Bitcoin has already broken below the bearish flag pattern and the neckline at 87492. If the rebound fails to regain the inside of the flag pattern, it will need to continue testing the support level at 86533. How many times has this level been tested? My idea is that support is like a wall—kicking it once or twice might hold, but continuous kicks will eventually break it. Although 86533 has been tested repeatedly and still holds, I don't believe it can withstand such repeated assaults indefinitely.

Currently, on the hourly chart, a potential Head and Shoulders pattern has emerged—note that it's still potential because the neckline hasn't been broken yet. Once 86533 is breached, the Head and Shoulders pattern is confirmed, and attention should turn to 85727. Unless the price can break through 88068, this downward trend will be hard to reverse.

Trading suggestions are as follows: if Bitcoin breaks above 88005 with volume, consider chasing long positions; if it breaks below 87422 with volume but then rebounds without reclaiming the level, consider chasing short positions. Remember to set proper stop-losses.

If the hourly chart breaks above and stabilizes above 88068, the next target range is 89408 to 90385. Without holding above 88068, the move has little significance.

On the 4-hour chart, if 87481 breaks downward, watch the support between 86385 and 85223. If 86385 cannot be reclaimed in time, a waterfall decline may occur.

Looking at the moving averages: on the 4-hour chart, Bitcoin's EMA20 and EMA50 are acting as a barrier—it's hard to get past them. If the price cannot stay above EMA20, the trend remains bearish; only when it stabilizes above EMA20 can a trend reversal be considered; a true breakout above EMA50 is needed to confirm a reversal. Today is Christmas, and the US stock market is closed, so Bitcoin can play on its own—pay close attention to changes in trading volume.

$$BTC