Trump elected as the 2024 U.S. President, winning not only the electoral college vote but also the popular vote, leading to a bullish market for cryptocurrencies. Due to his support for cryptocurrencies, Bitcoin has reached new historical highs. The overall market capitalization of cryptocurrencies increased by more than $200 billion in one day, with total trading volume for all Bitcoin spot ETFs reaching $6 billion on Wednesday, a new high since March. At the same time, at three in the morning, the U.S. Federal Reserve unexpectedly cut interest rates by another 25 basis points, incentivizing Bitcoin to reach new highs today under loose monetary policy.
In terms of cryptocurrencies, Bitcoin reached a new high of $76,422 yesterday before briefly consolidating downwards. Until the evening, a new wave of gains began, peaking at $76,849 early this morning, once again reaching a historical high. As of the time of writing, it has slightly retreated to around $76,108, with a 24-hour increase narrowing to 1.08%.
Bitcoin four-hour chart
Firstly, based on the Bollinger Bands indicator on the Bitcoin 4H chart, the price is close to the upper band and is far from the middle band, indicating that it is currently in an overbought area after a strong upward trend and may face some adjustment pressure. If the price breaks below the middle band of the Bollinger Bands, it may further drop to the lower band support area.
Secondly, based on the KDJ indicator on the Bitcoin 4H chart, both the K-value and D-value are operating at high levels, indicating that the Bitcoin price is in an overbought state and may experience a pullback at any time. If the KDJ three-line values cross downwards to form a death cross, the likelihood of a pullback will increase.
Finally, based on the MACD indicator on the Bitcoin 4H chart, the DIF line and DEA line show signs of convergence at high levels, and the MACD red histogram is gradually shortening, indicating that the current market's upward momentum is weakening. If the DIF line and DEA line form a death cross downwards at high levels, the price may show a downward trend in the short term.
Bitcoin one-hour chart
Firstly, based on the Bollinger Bands indicator on the Bitcoin 1H chart, the price is located between the middle and upper bands and is close to the middle band. The upper and lower bands are gradually converging, indicating signs of reduced volatility, which may lead to some consolidation in this area. If the price effectively breaks below the middle band, it may further approach the lower band.
Secondly, based on the KDJ indicator on the Bitcoin 1H chart, both the K-value and D-value are showing overbought signals at high levels, indicating that the current market is in an overbought state and may pull back at any time. If the K-value and D-value cross downwards to form a death cross, the risk of a pullback will further increase.
Finally, based on the MACD indicator on the Bitcoin 1H chart, the current DIF line and DEA line are at a relatively high position, but the two lines are close together. The MACD histogram has turned from red to green, indicating that the upward momentum is weakening. If the DIF line crosses below the DEA line to form a death cross, it can further confirm a downward signal.
Comprehensive analysis shows that based on the Bitcoin 4H chart, Bitcoin's trend exhibits strong upward momentum; however, due to several indicators showing overbought signals, a brief pullback may occur subsequently. Based on the Bitcoin 1H chart, Bitcoin's upward momentum has weakened, and there is a possibility of certain pullbacks or consolidations. In the short term, it is advisable to monitor whether the MACD forms a death cross, whether the KDJ overbought signals continue to decline, and the support effect of the middle band of the Bollinger Bands.
In summary, Daxian provides the following suggestions for reference.
Short Bitcoin near 76600, target 75600-75100, stop loss at 77000.
Rather than giving you a 100% accurate suggestion, I would rather provide you with a correct mindset and trend. After all, teaching someone to fish is better than giving them fish. Suggestions yield short-term gains, but learning the right mindset will allow you to earn for a lifetime! The focus is on mindset, grasping trends, and planning positions for market conditions. What I can do is use my practical experience to help everyone, guiding your investment decisions and management in the right direction.
Writing time: (2024-11-08, 19:15)
(Written by Daxian on cryptocurrency) This is a disclaimer: Online publications have delays; the above suggestions are for reference only. The author is dedicated to research and analysis in investment fields such as Bitcoin, Ethereum, altcoins, foreign exchange, and stocks, with years of experience in the financial markets and rich practical operation experience. Investment involves risks; proceed with caution. For more real-time market analysis, please follow the Daxian account and discuss with us.#BTC创历史新高
