1.8 Evening Bitcoin and Ethereum Market Analysis and Trading Suggestions

From the current 4-hour chart, the market has already shown a series of downward candles, with Bollinger Bands expanding and opening up. The upper and lower bands continue to diverge and extend. After a brief dip below the lower band, a rebound and correction occurred, but the momentum is clearly insufficient. The overall pattern remains dominated by the bears.

The 1-hour chart shows more clearly that Bitcoin is in a downtrend. In the afternoon, the price briefly dropped to around 89,588. The Bollinger Bands are opening downward, indicating that the bearish force still prevails. Technical indicators further confirm the weakness: the three KDJ lines are hovering at low levels and have not formed an effective golden cross, lacking short-term rebound momentum; the RSI lines remain below 40 and have not entered oversold territory, indicating room for further decline; on the MACD, the DIF and DEA are below the zero line, with negative values continuing to expand, suggesting the downtrend persists.

The key now is whether the rebound can effectively break through the middle band resistance. If it remains under pressure, the price is likely to continue downward, further testing the support zone around 89,000-88,500. Only if it unexpectedly stabilizes above the middle band can the market potentially enter a consolidation and correction phase.

Overall, tonight's trading strategy is still recommended to focus on shorting on rebounds, paying close attention to resistance levels, and trading in line with the trend.

Tonight, Bitcoin can be shorted around 90,500 with a target of 89,000.

Ethereum can be shorted around 3,130 with a target of 3,020.