Early Morning Trading Strategy
Although the current market has experienced a slight rebound, the upward momentum is clearly insufficient, and the overall trend shows a pattern of rising and then falling back. The 8-hour candles have consecutively closed with bearish (downward) candles, indicating that the trend is weakening again, and the market may face a downward "door" type decline.
From the 4-hour K-line perspective, after a rapid rally in the previous period, the price pulled back and closed with a bearish candle in the evening, with bullish momentum quickly diminishing. On the daily chart, after a large bullish candle broke through the previous high, it was followed by a volume-increasing bearish candle, swallowing part of the gains and forming an initial bearish engulfing pattern. The bullish strength has significantly weakened, and bears are gradually taking control.
Regarding technical indicators, on the 4-hour MACD, the DIF line quickly crosses below the DEA line in the positive zone, forming a death cross at high levels. The bullish energy histogram shifts from positive to negative and continues to shorten, indicating that short-term upward momentum is exhausted, and the risk of a correction or reversal is increasing. Coupled with high-volume decline, this suggests a large amount of chips are exiting at relatively high levels, increasing market selling pressure.
For early morning operations, it is recommended to focus on shorting after rebounds face resistance, avoiding blind bottom-fishing, and strictly setting stop-losses. Follow the trend to grasp potential correction space.
Bitcoin can be positioned in the 71,500–71,800 range, targeting around 70,000;
Ethereum can be positioned in the 2,090–2,120 range, targeting around 2,000.