$BTC Bitcoin midday analysis!

Bitcoin has been declining these days. I've been advising everyone to short-term buy on dips and take profits quickly, never hold through a drop. Don’t assume the trend has completely reversed just because it’s going up; a true reversal isn’t that simple. If reversals were easy, it wouldn’t have fallen for so long before.

This rally isn’t random; the bottom signals are very clear. After the price hit a new low, it only briefly broke below and then quickly rebounded, forming a hammer candlestick, indicating that there are buyers stepping in below and the downward momentum is weakening. Then, three candlesticks formed a Morning Star pattern, a classic bottoming signal, suggesting the rebound is pretty solid.

Following that, a volume-driven surge broke through the 63,626 resistance level. After a pullback confirming support, it continued to rise. This big bullish candle’s rapid rise is definitely driven by positive news, though I haven’t checked the specifics yet.

Currently, the price is approaching the previous high around 66,383, which is a key resistance level. Whether it can continue higher depends on whether it can break through this level. If it does, the next targets are 66,790 and 67,723; if it fails, support is at 65,298.

As long as it doesn’t fall below 65,298, it’s likely to fluctuate between 65,298 and 66,383, with a chance to go higher. But if it breaks below, especially if it drops below half of the big bullish candle, this rally could be a trap to clear out the longs above, and the price may continue to fall afterward.

Trading suggestions:

• On the hourly chart, if volume stabilizes above 66,383, aggressive traders can buy, targeting 66,790 and 67,723;

• If volume breaks below 65,618 and can’t recover on a rebound, go short;

• On the 4-hour chart, if it breaks below 65,736, look at 64,944 and 64,009 below.

Remember key levels:

• Resistance: 66,383, 66,790, 67,723

• Support: 65,298, 64,378, 63,626

Always set stop-loss orders and avoid holding through drops. In a downtrend, take profits quickly and don’t be greedy—making steady gains is much better than holding to a loss.