The master said: 6.6 Bitcoin's upward momentum is weakening, after a pullback, go long boldly

The way out you are looking for is to come up with a good method, then persist and do your best until your dreams become reality. However, on Wall Street, people call out prices every five minutes, buying and selling right under your nose, making it difficult to remain unmoved. ------ Warren Buffett
Bitcoin broke through 71,000 on Wednesday, June 5, and has been oscillating at high points, reaching a maximum of 71,758 around midnight today. However, selling pressure emerged shortly after, causing a slight drop, and as of the time of writing, the price is quoted at 70,978, with a slight increase of 0.40% in the last 24 hours.
Bitcoin 4-hour chart

According to the Bitcoin 4H chart, we can first see that the DIF line in the MACD is above the DEA line, and there is a certain distance between the two, indicating that we are still in a bullish market. However, the red histogram shows a trend of shortening compared to the previous histogram, suggesting that upward momentum is weakening, and everyone needs to pay attention to whether reversal signals will appear in the future.
Secondly, we can look at the KDJ indicator, where the three KDJ line values are currently operating at high levels in the overbought area, and the J line shows a downward turning trend, indicating that there will be a risk of adjustment or pullback in the short term.
Finally, we can see that the current Bitcoin price is operating between the upper band (72,135) and the middle band (70,215) of the Bollinger Bands, and the bandwidth of the Bollinger Bands is relatively wide, indicating significant market volatility. The recent price rebound from the lower band to the upper band shows that the current market is still in a strong upward phase. However, we all know that when the price approaches the upper band without breaking through or stabilizing above it, it often means that a certain resistance has formed at the upper band.
Bitcoin 1-hour chart

According to the Bitcoin 1H chart, we can first see that the DIF line in the MACD is below the DEA line, and the distance between the two is gradually expanding, while the histogram is green and gradually increasing, indicating that the current market is in a relatively strong downward trend.
Secondly, looking at the KDJ indicator, the three KDJ line values are currently operating at low levels, and the K line value and D line value are already in the oversold area, while the J line value is hovering below 30, indicating that the current market is in an oversold state, with a demand for a rebound. We need to pay attention to the formation of subsequent golden cross signals, which would be a very good buying signal.
Finally, we can see that the current Bitcoin price is operating between the middle band and the lower band of the Bollinger Bands, with a trend of approaching the middle band. However, the Bollinger Bands show signs of narrowing, indicating that market volatility is about to decrease. In the short term, we need to pay attention to the support formed near the lower band (70,679) and the resistance formed near the middle band (71,110). If the price can break through the middle band and stabilize, then the Bitcoin price will continue to move towards the upper band (71,544).
Comprehensive analysis: The MACD, KDJ, and BOLL indicators at the 4H level show that Bitcoin is still in an upward trend, but upward momentum has weakened, and a pullback may occur in the short term. The MACD, KDJ, and BOLL indicators at the 1H level show that Bitcoin is in a downward trend, but the KDJ indicator indicates an oversold state, suggesting that there may be a demand for a rebound in the short term.
In summary, the following suggestions are provided for reference:
Buy Bitcoin around 70,200-70,400, with a target of 71,100-71,550, and a stop loss at 69,800.
Time of writing: (2024-06-06, 16:00)