On the daily timeframe, the RSI indicator has formed a divergence at the support level of $25,200, resulting in a price rebound. However, attempts to break through the resistance level at $28,200 in the past few days have failed. The current perspective is that the price will return to $25,200 to test the support level once again. This level corresponds to the neckline of the bottom head and shoulders pattern constructed during last year's bear market, which has been tested multiple times this year.
Therefore, there is a high probability that this support level will fail. A stronger support level lies at $22,000, where spot traders and long-term investors can patiently await a price retracement to this level. If the price once again obtains significant support at $25,200 and forms a 2B pattern, it would present an opportunity for a strong rebound, marking the final upward trend of the year. Therefore, I currently hold a short position, and I will consider the possibility of a breakout and upward movement only if the price remains above $28,500 for more than three consecutive days.
Therefore, there is a high probability that this support level will fail. A stronger support level lies at $22,000, where spot traders and long-term investors can patiently await a price retracement to this level. If the price once again obtains significant support at $25,200 and forms a 2B pattern, it would present an opportunity for a strong rebound, marking the final upward trend of the year. Therefore, I currently hold a short position, and I will consider the possibility of a breakout and upward movement only if the price remains above $28,500 for more than three consecutive days.