Analysis and Trading Strategy for the Market in the Afternoon

This morning, Bitcoin rose rapidly to 89600 before quickly retreating, currently oscillating around the range of 88800-89000. The market is in a critical stage of long and short contention. Core operational principle: focus on range trading, strictly adhere to risk control discipline, and wait for effective breakout signals before positioning accordingly.

1. Core Support and Resistance and Market Analysis

1. Resistance validation: The morning surge faced pressure, with significant selling pressure in the 89000-90000 range, becoming a strong resistance zone in the short term, and the bulls have not yet shown effective breakthrough momentum.
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2. Support Anchor: The lower level of 85000 serves as a key support for the options market's "Gamma Wall," where there is substantial buying support, likely becoming the limit for short-term pullbacks; the secondary support level is between 87500-88000, which can serve as a reference for range trading.
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3. Emotions and Volatility: The current market shows increasing divergence between bulls and bears, with volatility remaining high. The sentiment is cautiously optimistic, and aggressive operations are not advisable until the direction becomes clear.

2. Refined Trading Strategies

(1) Interval high selling and low buying strategy (suitable for spot/light leverage)

1. High-positioning strategy: When the price reaches the range of 89000-89600, gradually reduce spot positions or lightly short-sell, with a strict stop-loss set above 90200, targeting downward to 88000-87000.
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2. Buy on dips: When the price falls back to the range of 85000-86000 and shows signs of stabilization (such as long lower shadows or shrinking trading volume), gradually buy spot, with stop-loss set below 84500 and a target looking up to 87500-88500.
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3. Neutral Observation: When the price hovers around 88000, avoid chasing highs and selling lows. Focus on observation and wait for clear signals at the range boundaries.

(2) Breakthrough Trend Following Strategy

1. Upward Breakout: If the price breaks above 90000 with volume and confirms a pullback without breaking, increase positions to go long, targeting 90800-91500, with a stop loss set below 89500.
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2. Breakdown: If the price breaks below the key support of 85000 with increased volume, immediately exit and observe or take a light short position, targeting a drop to 83000-84000, with a stop loss set above 85500.