Let's do a simple review of yesterday's market. During the daytime, the overall trend showed signs of breaking down and a recovery by the bulls, but there was no further volume surge to push prices higher. With the positive impact of tonight's CPI data, the bulls gained momentum and pushed higher, with Bitcoin's price once recovering to around 89,500 before facing resistance and pulling back. The price retraced to around 84,500 to stop the decline. Currently, there is some rebound, but it has not yet reclaimed the key level of 86,000. We have previously discussed the importance of the overall price ratio within the oscillation range. After the breakdown of the deep correction, whether it can recover in the future becomes even more critical. Additionally, today’s market remains pessimistic about the yen rate hike. Regarding the spot market, we remain firm on our key positions. After adding positions at high levels, the space was ultimately held, and we achieved a 3,000-point gain as expected. Markets favor those who are prepared, and profits follow the same principle.

Looking at the current chart, the daily timeframe has broken the previous low-level consolidation structure, breaking short-term support levels. With the MACD fast and slow lines forming a death cross, the daily candle closed bearish again. The negative signals from the yen rate hike also stimulated a market pullback. The Bollinger Bands are gradually opening after a period of contraction, indicating that the market will become clearer in the near future. On the four-hour chart, the price shows volatility, with multiple consolidations at low levels driven by news stimuli, but overall it recovered to the lower boundary of the previous upward channel before facing resistance. During the US session early morning, the rebound was fully retraced, and a large bearish candle pierced through the Bollinger Bands, indicating that the short-term bullish momentum remains relatively weak. Although the current K-line has turned positive with some recovery momentum, the strength of the rebound is still somewhat weak. In the short term during the daytime, there may be some pullback, but the magnitude is unlikely to be significant enough to affect the current bearish trend. Moving forward, the trading strategy remains to be cautious and continue to observe.

Bitcoin can be lightly shorted at 86,000-86,500, with a target around 84,000. Rebound to 87,500 can be used to add positions. Ethereum can be lightly shorted around 2,850, with a target near 2,750. #BTC #ETH