【Market Observation】

Bitcoin briefly plunged to around 89,588 this afternoon and is currently still hovering in a weak pattern. From the 4-hour chart, the market shows continuous downward candles, with the Bollinger Bands widening and the upper and lower bands extending outward. Although there was a rebound correction after breaking below the lower band, the momentum of this rebound is clearly insufficient, and the overall trend remains bearish.

The 1-hour details are even more evident — Bitcoin is operating within a standard downtrend channel. Since this afternoon’s sharp decline, the KDJ indicator’s three lines are all pressed at low levels with no movement, and a golden cross has not yet formed; the RSI’s three lines are tightly below 40, not even entering the oversold zone, indicating that there is still room for further decline. The MACD is more straightforward — both DIF and DEA are below the zero line, and the negative values are widening, showing no signs of weakening the bearish trend.

【Key Points】

The most critical factor now is whether the price can effectively break through the middle band resistance. If the rebound fails to stabilize at the middle band, it will likely continue to test the support zone around 89,000-88,500. Conversely, as long as the price unexpectedly stays above the middle band, the market may enter a correction and consolidation phase.

【Trading Strategy】

Tonight’s approach is to mainly look for short opportunities on rebounds, paying close attention to resistance levels.

BTC: Consider short positions around 90,500, targeting 89,000
ETH: Consider short positions around 3,130, targeting 3,020

Follow the trend, avoid chasing or rushing.