Deep Analysis of Bitcoin Price Action from the Evening of February 4th

This morning, Bitcoin experienced a sharp decline followed by a rebound, but faced significant selling pressure at the key resistance level of 77,000, causing the upward momentum to halt abruptly. From the current market situation, this rebound is merely a technical oversold correction and lacks substantial momentum from the funding side or news catalysts. Overall, the rebound remains weak.

The daily chart shows a long lower shadow candlestick, suggesting some support at the lows, but the market remains dominated by selling pressure, and the pattern has not changed. During the rebound, trading volume has continued to be sluggish, with a serious lack of buying follow-through. This is a typical resistance rally within a bearish trend, with a clear correctional nature.

Considering the current market environment, Bitcoin has officially entered a bear market cycle. The previous support at 73,000 is not a definitive bottom, and blindly bottom-fishing is akin to playing with fire, carrying very high risks. In terms of trading strategy, I recommend maintaining a bearish outlook and continuing to short on rebounds.

Trading suggestion: Short in batches around the 76,500-77,000 range, with targets at 74,500-75,000.