Brother Niu Market Insights
One Hour Chart's Bull-Bear Confrontation
Here is the chart, on the hourly level, Bitcoin price closed at 87650, with a drop of 0.06%. The market is unusually quiet.
The Bollinger Bands indicator is narrowing, with the upper band at 89475, the middle band at 88224, and the lower band at 86974. The price is currently running close to the lower band, which is a typical weak fluctuation signal. The upper middle band at 88224 has already become a strong resistance for the day.
More critically, the MACD indicator. Although the bearish momentum has somewhat converged, the dual lines are still steadily running below the zero axis, indicating that the overall market structure is still dominated by bears. Any rebound before standing above the middle band can only be considered a technical pullback.
Combining the support of the Bollinger lower band and the MACD bearish structure, the current market is in a consolidation phase after a decline, with a weak directional bias. Therefore, the strategy should prioritize shorting on rebounds rather than blindly trying to catch the bottom.
Clarifying the shorting strategy.
First, the entry point. It is recommended to pay attention to opportunities when the price rebounds near the integer level of 88000. This position is close to the lower side of the Bollinger middle band, making it an ideal area for bears to exert force again.
Second, stop-loss setting. Be sure to set it above 88600 to effectively guard against unexpected price breakthroughs that turn strong above the middle band.
Third, target outlook. The primary target is around 86970, which is the support area of the Bollinger lower band. If the downward momentum is strong, a further look at the integer level of 86000 is possible.
The current market volatility is narrowing, and it is about to choose a direction. Be sure to operate with light positions and strictly adhere to stop-loss.
