Good evening everyone, I am a trader who tends to get wiped out easily. Recently, my short positions have suffered multiple losses, but all damages have been limited to the greatest extent possible.

Let's first look at the recent trend. Bitcoin experienced a bullish move around 10 p.m. on January 2nd after a bullish cannon pattern, injecting positive sentiment into the market. Combining these three candlesticks, they mainly revolve around the 89,500 level as a doji pillar. The previous and subsequent ranges are around 88,400, with the upper range near 90,800. Looking at the four-hour candlestick chart in the early morning of January 3rd, it appears strong, but in reality, it was just a wipeout of high-leverage short positions entered at 87,500, and the surface momentum isn't as strong as it seems. Whether it's the dip at 2 a.m. or 3 p.m. on January 3rd, both tested the 89,500 level. When the price returned to around 90,500 for the second time, the bulls increased volume, and Bitcoin surged to around 91,800, completing an extension of the rebound.
Starting from 6 p.m. on January 3rd, six consecutive four-hour candlesticks formed, but three MACD histogram bars were pulled, indicating weakening bullish momentum. Buying around 90,000 indeed pushed the overall price higher. However, this was just a small upward spike without breaking significant ranges, stopping around 91,800. The bullish rebound expectation around 87,500 has already been satisfied, and the current consolidation is a fight between the short positions entered at the previous resistance zone of 90,500. Regarding the future trend, we need to see whether the market will continue to extend to the 92,500-92,800 zone. The market might rebound after a spike or first move towards 90,500 to test if there are signs of continuation, then move upward to confirm resistance.
Therefore, our key levels to watch are 91,800 and 92,500 above, and the previous resistance zone of 89,500-90,500 below. Currently, a two-way operation is possible.
For short positions, consider shorting at 91,800 and adding at 92,500-92,800.
For rebounds, consider going long at 90,500, adding at 89,500, and setting a stop loss at 88,800.
Ethereum can follow the same rhythm as Bitcoin:
Go long at 3,080 on rebounds, with a stop loss at 3,042,
or short at 3,152 with a stop loss at 3,188. Aggressive traders entering at current prices can adjust positions and ratios accordingly, with lighter positions for near-term trades and more conservative entries for averaging down, to maximize risk control.
#btc #eth