On Wednesday night, Bitcoin's price action once again exhibited a typical rally-then-retrace pattern. Looking back at recent market movements, after a rapid correction from the high of 90,400, multiple rebounds failed to break through this level, indicating that selling pressure above has formed a clear resistance. Currently, the price is oscillating around 88,500, with the bullish rebound momentum clearly weakening, and market enthusiasm for buying is cooling down. In the short term, the probability of a downward correction is much higher.

From a technical perspective, the 4-hour chart shows several noteworthy signals. The upper band of the Bollinger Bands has become a difficult resistance level, with the price retreating quickly each time it touches. The support from the middle band is also weakening. The J value in the KDJ indicator has entered the overbought zone, and a downward turn is likely to occur soon. Trading volume has been continuously shrinking during the rebound phase, and the divergence between volume and price further confirms the decline of bullish strength. From a pattern perspective, the early formation of a double top also provides strong structural support for a bearish trend.

Overall analysis indicates that both Ethereum and Bitcoin faced similar technical pressures on Wednesday night. It is recommended to short in the 89,000-89,500 range, with targets around 86,000-87,000.