After yesterday's decline, Bitcoin continued its downward trend into the early hours, with a low of around 87,920. The long positions entered last night were also closed out early. As mentioned yesterday, before breaking below, we should treat Bitcoin's price movements as oscillations. If a breakdown occurs, we need to learn to follow the trend. In the early hours, Bitcoin indeed broke below that level, so we closed out our long positions and immediately entered short positions. This was in line with our expectations; after the breakdown, the downward speed accelerated. Our short positions gained about 1,500 points, and Ethereum followed the trend with a short gain of over 50 points. Compared to that, the points gained from closing the longs are insignificant. Therefore, before entering a long position, I always have my own strategy for taking profits and handling various market conditions. When the market moves, there isn't much time to react, and trading isn't about blindly guessing.

From a daily chart perspective, Bitcoin's continuous decline with consecutive bearish candles not only broke the previous day's low but also closed at a low level, forming a series of bearish candles. This transition in the upward trend has broken the previous strong pattern. Additionally, the market has fallen for more than three trading days, further weakening the bullish structure. More worryingly, Bitcoin has broken below the previous support at 88,000, causing the key support to fail. Once this short-term bullish-to-bearish transition occurs, it indicates that the short-term market has turned bearish. The 4-hour chart shows the Bollinger lower band opening up, with the middle band acting as resistance due to downward pressure. This has become a key point dividing short-term strength and weakness, suggesting further decline in the near term. The 1-hour chart shows a small corrective downward channel, but since it failed to recover strongly by the close and ended at a low, it is likely to continue declining today.

This morning, Bitcoin is shorted around 88,300-88,500, with an initial target of 87,000. Ethereum is shorted around 3,080-3,100, with an initial target of 2,950.