On Wednesday Eastern Time, the US stock market opened lower and continued to decline, with all three major indices recording their largest drop in several weeks, with the Nasdaq down 1.6%. By the close, the Dow Jones Index fell 0.96%, reporting at 42,514.95 points; the S&P 500 Index fell 0.92%, reporting at 5,797.42 points; the Nasdaq Index fell 1.60%, reporting at 18,276.65 points.
In the cryptocurrency sector, possibly affected by the downturn in US stocks, Bitcoin's price dropped from a high of $67,833 around 6 AM on the 23rd to a low of $65,260 around 2 AM on the 24th, marking its lowest point since mid-month. Meanwhile, the short position near $67,800 mentioned in an article on the 22nd successfully took profit at $65,600, securing a profit of 2,200 points. As of the writing time, Bitcoin's price has rebounded slightly, quoted at $66,641, down 1.15% in the last 24 hours.
Bitcoin four-hour chart.
Firstly, according to the Bollinger Bands indicator in the Bitcoin 4H chart, the current price is operating between the middle band and the lower band but is closer to the lower band, indicating that the current market is in a bearish trend. If the price continues to move towards the lower band and breaks below it, there will be a further possibility of a price decline. The Bollinger Bands show slight signs of expansion, suggesting that future market fluctuations will be more intense.
Secondly, according to the KDJ indicator in the Bitcoin 4H chart, the K-line and D-line values are in a low area, and the J-line value has shown signs of rebound, indicating that the market is currently in an oversold state, with a short-term demand for rebound. However, the strength of the J-line's rebound from the oversold area is still insufficient; if the K-line and D-line do not form an effective upward trend, the price may continue to fluctuate or decline.
Lastly, according to the MACD indicator in the Bitcoin 4H chart, the DIF line and DEA line are operating below the zero axis and have formed a death cross, indicating that the market may continue to decline in the short term. The continuation of the MACD green histogram also validates the view of a sustained downtrend in the short-term market.
Bitcoin one-hour chart.
Firstly, according to the Bollinger Bands indicator in the Bitcoin 1H chart, Bitcoin's price started to rebound after touching the lower band and is currently close to the middle band. If the price can stabilize effectively at the middle band, it may head towards the upper band; however, if it is blocked at the middle band, the price will likely fall again.
Secondly, according to the KDJ indicator in the Bitcoin 1H chart, the K-line value has crossed above the D-line value, and the J-line value is also at a high position, indicating that there is a rebound force in the market in the short term. However, since the J-line value is close to the overbought area, caution is needed for short-term pullback risks, especially if the price does not break through the Bollinger Bands middle band.
Lastly, according to the MACD indicator in the Bitcoin 1H chart, the MACD green histogram has started to shorten, indicating that the bearish strength is weakening. The DIF line is gradually approaching the DEA line from below and shows signs of forming a golden cross, suggesting that there may be upward momentum in the short term. If the golden cross forms, the price will further rebound; however, if the golden cross does not form and the MACD green histogram grows again, the price will continue to test lower.
Comprehensive analysis shows that according to the Bitcoin 4H chart, the MACD presents a death cross status, with a clear bearish trend. The middle band of the Bollinger Bands shows a downward trend, indicating that the market may continue to seek support. The KDJ is at a low level and has shown initial signs of rebound. If the price rebounds and stabilizes above the Bollinger Bands middle band, it may initiate a short-term rebound. According to the Bitcoin 1H chart, the potential golden cross of the MACD and the rebound from the Bollinger Bands lower band suggest that the price may rebound in the short term, but the pressure at the middle band of the Bollinger Bands may limit the rebound height. The KDJ is already at a high position, entering an overbought state. If the price cannot effectively break through near the Bollinger Bands middle band, it may fall again.
In summary, the expert provides the following suggestions for reference.
Bitcoin rebounds to 66,800-67,000 to short, with a target of 65,600-65,260 and a stop-loss at 67,360.
Giving you a hundred percent accurate suggestion is not as good as providing you with the correct mindset and trend. After all, teaching a man to fish is better than giving him fish. The suggestion is to earn for a moment; learning the mindset allows you to earn for a lifetime! The focus is on the mindset, grasping the trend, and planning positions. What I can do is use my practical experience to help everyone, guiding your investment decisions and management in the right direction.
Time of writing: (2024-10-24, 07:00)
(Written by the expert) This is hereby stated: The information published online has delays; the above suggestions are for reference only. The author is dedicated to the research and analysis of Bitcoin, Ethereum, altcoins, foreign exchange, stocks, and other investment fields, having been involved in financial markets for many years and possessing rich practical operation experience. Investment carries risks; caution is required when entering the market. For more real-time market analysis, please follow the expert and discuss together.#盘整行情分析
