Bitcoin entered a volatile downward trend after reaching a new all-time high of $99,588 over the past weekend. Around dusk yesterday, it initiated a significant correction from around $98,500, reaching a low of $95,745 at midnight. However, it has since rebounded, and is currently trading at $98,528, down 0.13% in the past 24 hours.
Under the downward trend of Bitcoin, the total amount of liquidations in the crypto market over the past 24 hours reached $495 million, with $364 million in long positions and $131 million in short positions being liquidated, affecting over 193,000 traders.
Bitcoin Daily Chart
First, based on the Bollinger Bands indicator on the Bitcoin daily chart, the current price is running near the upper band, and has briefly broken through it, indicating that the bulls remain strong, but the price has risen excessively and may be subject to a correction. If the price continues to trade near the upper band and does not fall below the middle band, it suggests that the bullish pattern remains intact. However, if the price falls below the middle band, it may undergo a deeper correction.
Secondly, based on the KDJ indicator on the Bitcoin daily chart, the K-line and D-line values are at high levels, and the J-line value has entered the overbought zone, with the K-line and D-line showing signs of turning downward, indicating a risk of a short-term correction. If the three KDJ lines form a death cross, the downward pressure will increase. If they can maintain at high levels without forming a death cross, there may still be a possibility of further upside.
Finally, based on the MACD indicator on the Bitcoin daily chart, the DIF line and DEA line are both above the 0 axis, but the two lines are gradually converging. If they subsequently form a death cross, the market will then enter a corrective phase. Although the MACD histogram is red, it shows signs of shortening, indicating that the upward momentum is gradually weakening.
Bitcoin 4-Hour Chart
First, based on the Bollinger Bands indicator on the 4-hour Bitcoin chart, the current price is oscillating between the middle band and the upper band, with the upper band exerting some resistance. The middle band serves as support, and if the price falls below it, it may move towards the lower band. If the price returns to the upper band and breaks through it, it will continue to move upwards.
Secondly, based on the KDJ indicator on the 4-hour Bitcoin chart, the three KDJ lines are running at high levels, but the K-line and D-line are showing signs of turning downward, and the J-line has started to decline, indicating the presence of a short-term correction pressure after overbought conditions. If the K-line falls below the D-line to form a death cross, it may trigger deeper downward pressure. If the KDJ consolidates at high levels and then forms a golden cross, the uptrend will continue.
Finally, based on the MACD indicator on the 4-hour Bitcoin chart, the red MACD histogram is continuing to shorten, indicating that the upward momentum is weakening, and the DIF line is also approaching the DEA line. If they subsequently form a death cross, the risk of a short-term downward trend will increase. If the DIF line continues to move upward and diverge from the DEA line, it suggests that the bullish force remains dominant.
In summary, based on the Bitcoin daily chart, Bitcoin is currently in a high-level consolidation phase after a strong uptrend, and the MACD and KDJ indicators both suggest that it may face some short-term adjustment pressure, but the Bollinger Bands still indicate the presence of bullish forces. On the 4-hour chart, Bitcoin is showing signs of weakening short-term momentum, as evidenced by the shortening of the red MACD histogram, the downward turning of the KDJ, and the resistance of the Bollinger Bands' upper band. However, the middle band of the Bollinger Bands still provides support, and the overall trend has not completely turned bearish.
In conclusion, the sage provides the following suggestions for your reference:
Suggestion 1: Long Bitcoin at the $98,000-$97,800 level, with a target of $99,800-$100,000 and a stop-loss at $97,400.
Suggestion 2: Short Bitcoin at the $99,800-$100,000 level, with a target of $97,600-$97,400 and a stop-loss at $100,400.
Writing time: (2024-11-25, 18:00)
(Text by Sage Coin Talk)
