Gu Jingci: Bitcoin/Ethereum Trading Strategy and Market Analysis (March 6th)

Bitcoin/Ethereum surged in the early hours of last night, prompting multiple short-selling recommendations. However, the price quickly fell to around 70800 and 2055, resulting in losses of over 2500 points and 100 points respectively for short positions. Currently, the price has rebounded somewhat, but the strength is weak. The price action has been characterized by consecutive bearish candles on the 8-hour chart, indicating a weakening trend and a potential for another sharp drop. The 4-hour chart shows a similar pattern: after a significant rise, the price fell back to a bearish close, indicating a weakening trend. On the daily chart, a large bullish candle broke through the previous high, but this was followed by a large bearish candle with high volume, engulfing some of the gains and forming an initial bearish engulfing pattern, suggesting weakening bullish momentum and a shift in the bearish dominance. The 4-hour MACD indicator shows the DIF line rapidly crossing below the DEA line in positive territory, and the MACD histogram turning negative or shortening rapidly, indicating a significant weakening of short-term upward momentum and a potential death cross, suggesting a short-term pullback or trend reversal. Furthermore, the high-volume sell-off at the high level indicates a large amount of capital exiting at higher prices. Trading suggestions for early morning: Continue shorting Bitcoin around 71,500 to 72,000, with a target of around 69,000 to 70,000; Continue shorting Ethereum around 2,090 to 2,110, with a target of around 1,980 to 2020.