Today we will review the market and see if Bitcoin has really encountered strong support. Yesterday's market trend First, let's take a look at the market situation. Yesterday, Bitcoin closed with a big negative column (this is the daily line). However, this big negative column did not engulf the opening price of the big negative column of the day before (US$94,500 to US$94,950). Failure to break this point means that a true "evening star" pattern has not been formed. Therefore, there may be some turning points here.

The possibility of a turnaround In yesterday's show, I mentioned that Bitcoin may have encountered strong support and may rebound. However, I think the probability of a rebound is not particularly high, because the market data at the time and the market had just recovered from Christmas, which did not support a strong rebound. Therefore, I suggest that you can do some bottom-fishing around $96,000, using only 20% of the position. Technical analysis: RSI oversold zone Today we will look back at the situation in the early trading. Judging from the small-level chart, the RSI has entered the oversold zone, and oversold signals have appeared many times at the one-hour level. This means that Bitcoin may have encountered a stage bottom. We can also see that the shape of the K-line also supports the phenomenon

Doji and Engulfing Patterns: Rebound Signals?

We see that at the bottom of the small shock box, there are many cross stars, and these cross stars show the shape of long lower shadows. This usually means that the bullish power of the market is stronger. In particular, these K-line combinations show the engulfing pattern, indicating the possibility of a rebound.

If the next K-line can break through the current high point, it may enter a rebound market. As for why it is supported at this position, you can see that the previous support level is here, and it is also the Fibonacci 0.618 position. The coordination of multiple technical indicators increases the possibility of a rebound.

Current Market Liquidity

From the 6-hour chart, Bitcoin has seen a net inflow, indicating that market funds are flowing in. This is a very important signal, especially after the opening of the U.S. stock market, Bitcoin ETFs also began to have net inflows.

Distribution of short and long orders

In the liquidation map, the number of long orders around Bitcoin is relatively small, while the number of short orders is slightly larger. Therefore, the current price increase may be driven by short-order covering.

Adjust the bottom-picking strategy: increase from 20% to 50%

Considering the current market changes, I suggest adjusting the bottom-fishing strategy. The original plan was to bottom-fish with a 20% position near $96,000, but now it can be increased to 50%. Of course, it should be noted that the additional 30% position is for swing trading, and it must be sold at high levels.

If the rebound is successful, we expect that this rebound will not directly reverse the market, and it may still be in a range of fluctuations. We can implement a high-selling and low-buying strategy within this range.

Contract operation suggestions

If you participate in contract operations, you can try to make a small long order after breaking through the bottom box. The target price after breaking through the box is around $97,000. This range is not large, about $1,000.

However, if there is an unexpected market situation, such as dropping to the 0.66 position of the Fibbonacci and then rebounding back to above 0.618, you can make a long order with a stop loss at this position. At this time, the rebound space will be larger, with 2,400 points of space.