The master said about the coin: 6.1 Bitcoin short-term rebound, but be wary of KDJ pullback pressure

Excellent investors are always waiting, always patient, waiting for the market to confirm their judgments. Remember, do not fully trust your judgment until the market itself confirms your view. ------ Jesse Livermore

Last night, the master mentioned in the article that Bitcoin is experiencing a consolidation pattern around the current price level, with no clear direction in the short term. Meanwhile, a strong support has formed near the middle line of the Bollinger Bands, and there is certain resistance near the upper line. If the price breaks through the upper line, a new upward trend may emerge; conversely, if the price falls below the middle line, there will be further tests of the support at the lower line. This analysis has been effectively validated.
In the early hours of June 1, Bitcoin's price fell below the middle line and tested the support at the lower line, dropping to a low of 66704, but it did not stabilize at the lower line and immediately rebounded to operate between the middle line and the lower line. As of the time of writing, Bitcoin is quoted at 67681.
Bitcoin Four-Hour Chart

The price movement of Bitcoin on the four-hour chart seems to show some downward pressure. First, both the DIF line and the DEA line are below the 0 axis, which usually indicates that the market is in a downtrend. The DIF crossing below the DEA line further confirms this trend. The MACD histogram shows that the red bars are gradually shortening while the green bars are starting to grow, indicating that the bearish strength is gradually increasing while the bullish strength is weakening.
Additionally, looking at the KDJ indicator, the K value and D value are around 40 and moving downward, with the J value below the 0 axis, indicating significant selling pressure in the market. This suggests that there may be more selling pressure in the short term, leading to further declines in Bitcoin's price.
Finally, Bitcoin's price is fluctuating between the middle and lower lines of the Bollinger Bands, and the bandwidth of the Bollinger Bands is narrow. This suggests that there may be significant market fluctuations ahead.
Bitcoin One-Hour Chart

Based on the one-hour chart of Bitcoin, we have identified some interesting signals. First, we see that the DIF line and DEA line in the MACD indicator are still in the negative territory, indicating that the market is still in a downtrend. However, the DIF line crossing above the DEA line forms a golden cross, which may signal an increased possibility of a short-term rebound in the market. Additionally, the increase in red bars also indicates that market sentiment may improve in the short term.
However, it is worth noting that the K value and D value in the KDJ indicator are already in a high range, with the J value breaking above 80, indicating an overbought signal. This may mean that the market could experience pullback pressure in the short term. However, if the market performs strongly, this overbought condition may persist for a longer time.
Furthermore, we note that the current price is near the middle line (67722), and the Bollinger Bands are gradually converging, which may indicate that market volatility is decreasing, and the price may consolidate in this area for a while. If the price breaks through the upper line (68464), it could trigger a strong upward momentum; conversely, if the price falls below the lower line (66981), it could trigger further declines.
Comprehensive Analysis: In the short term, Bitcoin may experience a rebound, but caution is needed regarding the pullback pressure after the KDJ is overbought. The current price is consolidating near the middle line of the Bollinger Bands, and attention should be paid to whether it can effectively break through the upper and lower lines to determine the trend in the future.
In summary, the master offers the following suggestions for reference:
Suggestion 1: Go long near 67000, target 68000-68900, stop loss at 66600.
Suggestion 2: Go short near 68900, target 67000, stop loss at 69520.
Giving you a hundred percent accurate suggestion is not as good as providing you with the right mindset and trend. After all, teaching someone to fish is better than giving them fish. Suggestions may help you earn temporarily, but learning the mindset will help you earn for a lifetime! The focus is on the mindset, grasping the trend, and planning the layout and positions. What I can do is use my practical experience to help everyone, guiding your investment decisions and management in the right direction.
Time of writing: (2024-06-01, 12:00)