Silk Road at 12.2 AM

Yesterday, the Bitcoin price experienced a sudden crash, dropping directly from a high to the critical support line at 85563; in the afternoon, it fluctuated and climbed to the high point of 86886. Just when the market thought it was stabilizing and recovering, in the evening, the pressure returned, causing the price to plummet straight down to a low of 83786. The second Bitcoin followed suit, showing a downward trend, as the early Bitcoin price fell from a high of 3040, probing down to the support level of 2805 before briefly stabilizing, and then entering a phase of consolidation. However, in the evening, as Bitcoin broke down again, it further dipped to a low of 2718. Yesterday, the orange futures were quite profitable; although the first trade in the morning was regrettably a loss, all subsequent trades were profitable. Bitcoin gained over 5000 points in total, while the second Bitcoin took down over 200 points.

The current panel structure shows that after the formation of three consecutive small bearish candles on the daily chart, a significant bearish candle has once again broken downwards. The framework is approaching the key support area of the lower Bollinger Band, and the overall wave structure of the decline remains intact. Although there is a certain length of lower shadow below the bearish candlestick during the day, the bearish pattern on the daily chart is no longer in doubt, and the previous rebound correction process has officially ended. From the perspective of trend continuity, there is a high probability of a second downward test of the support strength at the lower Bollinger Band at this level. The moving average system at this level is still arranged in a divergent downward manner, and the dominant pattern of the short-term market has not undergone a fundamental change. Therefore, the trading strategy suggested for the early morning is to set up sell orders at the rebound high points, strictly adhering to the principle of trend-following trading, in line with the current trend rhythm.
Operation Suggestions
Bitcoin: around 85300-85500, target near 84000
Second pancake: around 2760-2780, target near 2670