March 6th Afternoon Market Analysis

Bitcoin's rally has peaked after a sharp surge, purely a trap to lure in buyers. Do not chase the high; instead, consider shorting and wait for a waterfall decline! After a false breakout above the upper Bollinger Band on the daily chart, the price has retreated to the lower band today. The KDJ and RSI are in overbought territory and have turned downward, while MACD momentum has significantly weakened.

On the 4-hour chart, the price is testing the middle Bollinger Band support. Once it breaks below the 70,000 level, the downward acceleration will increase. All indicators remain overbought at high levels and continue downward, with MACD forming a bearish divergence, indicating increasing bearish strength.

On the hourly chart, the three Bollinger Bands are moving downward in sync, and the price is weakly trending along the lower band. The overall strategy remains bearish; this rally was merely a shakeout of short leverage. After a quick rise, the momentum has already weakened. The bulls lack strength, and the high-level oscillation is unstable, clearly showing that the main players are pushing the price up to sell off and cash out at high levels. Do not mistake a temporary rebound for a trend reversal. Chasing the top is very risky and can lead to being caught in a trap. Once a sharp decline occurs, losses will be hard to bear!

Bitcoin is recommended to short around 70,600-71,200, with a target of 69,500-68,400.