During the midnight U.S. market session, Bitcoin staged a dramatic deep V reversal. The price surged strongly from a low of 101,270, breaking through the 104,000 level in one go, effectively crushing the short sellers' defense line, leading to large-scale liquidation of short positions, and the market's panic sentiment quickly dissipated, significantly increasing the enthusiasm for short-term going long. Ethereum also synchronized its rebound rhythm, with the price quickly rising to around 2595 USD, resonating with Bitcoin's movement. However, the subsequent pullback after reaching a high was quite substantial, and it has now retraced to around 2540.

Judging from the technical analysis of Bitcoin's 1-hour level, the market is facing obvious adjustment pressure in the short term. The Bollinger Bands indicator shows that the price has failed to achieve an effective breakthrough when testing the upper band many times, indicating that the upper band has a suppressive effect. At present, the price continues to oscillate in a narrow range near the middle track, and the bullish momentum continues to attenuate, and there is a short-term break below the support of the middle track and further support for the lower track. In terms of the KDJ indicator, the third line has been in the overbought area for a long time, reflecting that the bulls' strength has been significantly depleted. Once the J value first turns downward, driving the K and D values to form a dead fork, a technical pullback will be triggered, indicating that the bears' strength is about to accumulate and launch a counterattack. The MACD indicator shows that the DIF line and the DEA line continue to run below the zero line, and the overall market is in a bear-dominated pattern. Although there has been a recent increase in red columns, this is more likely to be a short-term counterattack by the bulls. If the follow-up volume can not be effectively followed, it will be difficult for the DIF line to successfully cross the zero axis, and the price will most likely return to the downward channel, further suppressing the market price. Combined with the analysis of the three major technical indicators, the short-term bullish upward momentum of Bitcoin is seriously insufficient, and the bears dominate, and it is expected that there will be a large downside risk to the price in the short term.
You can short Bitcoin at 103800-104300, looking at around 102000. You can short Ether at 2570-2600, looking at around 2450. #BTC