Bitcoin Trend Analysis

Bitcoin is currently priced at 88,700, exhibiting low-volatility range-bound trading. While trend indicators still show a bearish alignment, short-term candlestick patterns have formed a bullish engulfing pattern, creating potential bullish resonance. The price level near the Bollinger Band’s middle line further indicates a relatively balanced market sentiment, making a clear breakout unlikely in the short term. Strong buying support exists at the daily chart’s lows. The 2-hour candlestick shows a small bullish candle, indicating short-term bullish dominance. The 2-hour MACD bullish signal is strengthening; the daily chart remains in a weak recovery phase, with the EMA providing effective short-term support, and the overall trend leaning towards bullish. Currently, the market is at two extremes: a short-term overall bullish trend and a long-term overall bearish trend. The recommended strategy is to primarily short on rallies, following the larger trend.