Recently, with the tense global geopolitical situation, especially as the US presidential election approaches, investors in various sectors have begun to seek safe-haven assets to hedge against economic uncertainty. Bitcoin and gold are the main beneficiaries, as they are seen as assets that can hedge against the depreciation of the US dollar and are also considered to have the characteristic of "value storage".
Around 21:30 last night, Bitcoin rose sharply, approaching the $68,000 mark, possibly due to the opening decline of the US stock market or investors taking profits, resulting in a large selling pressure that caused Bitcoin's price to plummet by more than $3,000 within an hour, reaching a low of $64,781. But at this time, when investors thought the downtrend was emerging, Bitcoin V-shaped rebounded back to $67,000, the "N"-shaped price fluctuation caused both long and short positions to be killed, as of the time of writing, Bitcoin is quoted at $67,751, up about 2.01% in the last 24 hours.
Bitcoin 4H chart
First, based on the Bollinger Bands indicator on the Bitcoin 4H chart, the current price is running near the upper band, indicating that the market is in a strong upward trend, but is also in an overbought position, and needs to be vigilant about the possibility of a correction in the short term. The Bollinger Bands are in an open state, indicating that the subsequent volatility will be relatively strong.
Secondly, based on the KDJ indicator on the Bitcoin 4H chart, the K-line value and D-line value are both in the overbought area, and the J-line value is even in the severely overbought area. As the market is in an overbought state, there may be a risk of a technical correction in the short term for Bitcoin's price.
Finally, based on the MACD indicator on the Bitcoin 4H chart, the DIF line is significantly higher than the DEA line and is running above the 0 axis, indicating that the bullish force still dominates the market, and the MACD histogram is also presented in red, further confirming the market is in a bullish trend.
Bitcoin 1H chart
First, based on the Bollinger Bands indicator on the Bitcoin 1H chart, the current Bitcoin price is running near the upper band, indicating that it is in a strong upward trend in the short term. The continuous upward expansion of the upper band reflects the strong market momentum. But the price is approaching the upper band, which also means that the market may have overbought pressure, and there is a risk of correction or consolidation in the short term.
Secondly, based on the KDJ indicator on the Bitcoin 1H chart, the K-line value and D-line value are both above 80, while the J-line value is 100, indicating that the price of Bitcoin is in an overbought state, and there may be pressure for a correction in the short term. If the KDJ three-line values turn down, it will further confirm the correction signal.
Finally, based on the MACD indicator on the Bitcoin 1H chart, the DIF line is higher than the DEA line, and the MACD red histogram is presented in red, indicating that the market is in a bullish trend and the upward momentum is still ongoing. However, the MACD red histogram is starting to shorten gradually, indicating that the upward momentum is about to weaken, and it is necessary to pay attention to whether the DIF line can cross below the DEA line to form a death cross in the future, if a death cross is formed, the price will likely correct in the short term.
In summary, based on the Bitcoin 4H chart, the Bollinger Bands upper band is still expanding, indicating that the market still has some upside room, but the KDJ is currently in the overbought area, so there is a possibility of a correction in the short term. Based on the Bitcoin 1H chart, the Bollinger Bands indicate that the market's upward momentum is relatively strong, but the KDJ and MACD both show signals of overbought and weakening upward momentum, so it is necessary to pay attention to whether the MACD and KDJ will turn down to form a death cross in the short term to confirm the depth of the correction.
In summary, the wizard gives the following suggestions for reference:
Long Bitcoin at 66,800-67,000, target 68,000-68,500, stop loss at 66,400.
Writing time: (2024-10-16, 19:00)
(Text - Wizard Talks Coins)
