#BinanceABCs Bitcoin Trend Observation and Trading Strategy

From a weekly perspective, $BTC has already broken below the 10-week and 20-week moving averages, which is a clear bearish signal. The pressure on the daily chart is even more direct — a downward pressure line formed since October has been overhead, and each time the price rises to the 92,000-94,000 range, it tends to be suppressed, making a breakout quite difficult.

What’s more noteworthy is the classic head and shoulders pattern, with key support currently around 85,000-86,000. This level has been tested three times, each time with some consumption, and according to general rules, the resilience of support tends to decrease over time.

Turning to the short-term cycle, the 4-hour chart shows a seemingly good rebound, but the trading volume has shrunk significantly, indicating a typical false rally. Looking at the 1-hour chart, there have been several attempts to break through key resistance, but each time they’ve been pushed back, and such repeated false breakouts can easily induce retail traders to chase the rally.

The current trading plan is to short in the 88,000-88,500 range, with stop-loss set accordingly, targeting around 86,000-85,000. Keep an eye on ETH as a market indicator for coordinated movement.