Gu Jingci: 3.6 Bitcoin/Ethereum Morning Trading Strategy and Market Analysis

Bitcoin/Ethereum started to surge last night, repeatedly reminding of short-selling opportunities. The market quickly dropped to around 70,800 and 2,055 in the evening, with short positions gaining over 2,500 points and 100 points of profit. Currently, the market has rebounded but with limited strength. The price surged and then fell back, showing a continuous downward trend on the 8-hour chart, indicating the trend is weakening again and may experience another pullback. The 4-hour candlestick chart shows that after a significant rally earlier, the price surged and then fell back, closing with a bearish candle, signaling a weakening trend.

On the daily chart, a large volume bullish candle previously broke through the previous high, but was immediately followed by a large volume bearish candle that swallowed part of the gains, forming an initial bearish engulfing pattern. This suggests that the bullish momentum is weakening and the bears are gaining advantage. The 4-hour MACD indicator shows the DIF line rapidly crossing below the DEA line in positive territory, with the MACD histogram shifting from positive to negative or shrinking quickly, indicating that short-term upward momentum is significantly weakening and a death cross may form, signaling a short-term correction or trend reversal. Additionally, the high-volume decline at high levels indicates a large amount of chips are escaping at high prices.

Early morning trading suggestions: Continue short positions near 71,500 to 72,000 for Bitcoin, with targets around 69,000 to 70,000; and short positions near 2,090 to 2,110 for Ethereum, with targets around 1,980 to 2,020.