Bitcoin and Ethereum Daily Bearish Trend Continues: Key Points for Switching Between Long and Short Positions

Short-term view focuses on fluctuations, while long-term view aims for patterns. Currently, the daily bearish signals in the cryptocurrency market are clear, with Bitcoin and Ethereum entering a phase of time lag, continuing the downward trend. Grasping the rhythm of switching between long and short positions has become the key to profitability.

Looking back at recent market movements, a wide range of fluctuations have occurred, providing clear profit windows for both long and short operations. Taking Bitcoin as an example, the price first broke through the 89000 level, surged to the previous consolidation resistance at 90300, and then faced resistance and fell back, eventually dipping to around the previous low of 85000 before rebounding. This movement validates the effectiveness of the key resistance level and highlights the importance of early positioning.

From an operational perspective, accurately timing the rhythm is the core of profitability. During the price surge, positioning short orders based on the 90300 resistance level can successfully capture downward profits; conversely, when the price rebounds at the 85000 previous low support level, opening long positions at 89990 can also yield bullish gains. It is worth noting that a flexible position strategy is crucial— even if holding short positions, one can still cautiously try long positions during a clear bullish rebound to capture opportunities for both directions and enhance capital utilization.

Regarding future trends, the bearish trend for Bitcoin at the 4-hour level has been confirmed, with 85000 becoming the current key watershed. If this support level is effectively breached, the price will sequentially test target levels of 83000, 80600, etc.; in the short term, it is essential to focus on the gains and losses around the 83700 level, as whether this position breaks will determine the subsequent rhythm of testing 82000 and even 80000.

Ethereum's movement shows a strong correlation with Bitcoin, but its bearish performance is weaker. After the previous key support level of 83800 was lost, it has turned into a resistance level, suppressing the 4-hour and 8-hour candlesticks to continue declining. The price has failed to break the 2823 level on two attempts, highlighting heavy selling pressure above. Attention should now be focused on the defense of the 2719 support level. If this level is breached, the market will further test the previous low of 2621, with the downward space expected to continue opening up.

From the perspective of market dynamics, the recent wide fluctuations are essentially a typical washout market. The operators pull up the price and then smash it down, causing retail investors holding short positions to be shaken out by violent fluctuations, clearing out those with insufficient confidence or overly heavy positions. Once the floating capital is cleared, the market returns to the main downward trend to harvest profits. In this process, the price dropped from around 86000 and then returned to its original position; although the point seems unchanged, a large number of retail investors have been shaken out, highlighting the importance of professional strategy guidance in cryptocurrency trading.

Of course, market trends carry uncertainties, and one must be wary of exceptional situations. If the hourly price breaks above the middle band of the Bollinger Bands and re-establishes above 86000, breaking the 87000 resistance level, a short-term rebound may occur. At this time, positioning short orders at the 87000 resistance level would be relatively safer. For investors with sufficient capital and experience, they may also choose to enter the market early and adjust their replenishment or exit strategies flexibly based on market trends.

Overall, the current daily bearish trend in the cryptocurrency market remains unchanged, and the market is still in a rhythm of testing previous lows. Investors need to closely monitor key support and resistance levels, grasp the nodes for switching between long and short positions, and manage their positions well to cope with the market's violent fluctuations.

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