Bitcoin/Ethereum Market Analysis and Trading Strategies

Yesterday's Trading Review

Yesterday morning, we entered short positions at high levels around 70,800 for Bitcoin and 2,080 for Ethereum, then precisely reversed to long positions at low levels around 68,000 and 2,000. Overall, this approach yielded a good profit margin.

Technical Deep Dive

- Candlestick Patterns: Recently, the market has experienced intense volatility. On February 6, after a price dip, there was a rapid rally, leaving a long lower shadow. This pattern confirms strong support below. Currently, prices are in a phase of alternating small bullish and bearish candles, with the bulls and bears temporarily balanced.
- MACD Indicator: The DIF and DEA lines remain in negative territory but show clear convergence, and the histogram has shifted from green to red, indicating that bearish momentum is waning.
- Price Structure: The market is in a weak recovery phase following a deep correction. Notably, the extreme flash crash on February 6 (Bitcoin touched a low of 59,900, Ethereum 1,740) did not trigger further panic. Prices quickly rebounded and returned to a consolidation pattern.
- 4-Hour Chart Pattern: Prices are moving within a stepped weak downtrend channel. The downward trendline and the middle band of the Bollinger Bands have both shifted downward, pointing toward approximately 72,000 for Bitcoin and 2,150 for Ethereum.
- 1-Hour Chart Signal: Short-term moving averages are diverging in a bearish pattern, indicating that the intraday downtrend remains clear.

Today's Trading Recommendations

- Bitcoin: Suggest to gradually short in the 69,500-70,000 range, targeting 67,000-68,000, with a stop-loss set at 71,500.
- Ethereum: Suggest to gradually short in the 2,090-2,110 range, targeting 2,030, with a stop-loss set at 2,150.