April 6 Midday Silk Road and Suggestions

Bitcoin has followed a textbook 1-2-3 rule on the hourly chart. Since this happened over the weekend, I didn't believe that Bitcoin could reverse on the hourly chart. After all, weekends tend to have either no movement or large swings, with random pump and dump actions. Bitcoin first broke through the yellow downward trend line marked in the chart, completing the first step of the breakout. The second step was a pullback that did not create a new low, meaning it did not break below the support zone of 66,465-66,225. The third step was making a new high, completing the 1-2-3 rule and signaling an hourly reversal. Although Bitcoin has shown some upward movement, please note the white arrow pointing to the candlestick above, which formed a shooting star. This indicates resistance at around 69,321. Looking at the corresponding shooting star below, it was accompanied by a large volume, but the price only made a slight upward spike, attempting a fake breakout of the 69,321 resistance. This shows abnormal volume and price action, with the bulls exerting effort but failing to make progress.

Next, watch whether Bitcoin can break through the 69,321 resistance. If it can break and hold above this level, the next target is the resistance at 71,367. If it cannot break above 69,321, a pullback is necessary. A healthy correction would see a retest of the support zone at 67,845-67,418. Ideally, it would also retest the support area at 66,465-66,225, where there is significant bullish liquidity. There is little bearish liquidity above, but Bitcoin is trying to push higher. I hope everyone doesn't get carried away by the upward movement, especially since the US stock market is still closed over the weekend.

For Bitcoin with volume breaking through 69,356 on the right side, aggressive traders can chase long positions. Alternatively, wait for a retest of 67,993 before adding. If it falls below 67,000, stop-loss and look for a new high. A volume breakdown below 68,760 followed by a rebound that fails to recover indicates a short position on the right side.

If Bitcoin breaks and holds above 69,356 on the hourly chart, the next target is 70,531-71,419. If it cannot surpass 69,356, the move is ineffective.

On the 4-hour chart, a breakdown below 68,687 suggests a target of 67,863-66,598.

Resistance levels above are at 69,356-70,531-71,419.

Support levels below are at 68,629-67,822-66,897.

$ETH Strategy:
Bitcoin with volume breaking through 2,135 on the right side, chase long positions, with a stop-loss on retracement.
If it drops below 2,113 with volume, chase short positions, with a proper stop-loss.

Retest support at 2,084 to confirm validity, adding one more position.
If it falls below 2,049, stop-loss.
On the hourly chart, Bitcoin stabilizing above 2,135 targets 2,167-2,199.
Watch for a short position at 2,199.
Break above 2,233 to stop-loss.
Left-side order: buy at 2,025, stop-loss below 1,992.
Resistance above at 2,135-2,167-2,199.
Support below at 2,112-2,083-2,048.

On the 4-hour chart, a breakdown below 2,092 targets 2,057-2,013.

The flag pattern on the 2-hour chart has been broken, and the price has stabilized above the 2,126 resistance. The next target is near 2,167. As long as the retest does not fall below 2,073 and the price remains within the flag pattern, there will be no deep correction. If it falls back inside the flag, it will continue to consolidate within the pattern before choosing a new direction.

$BTC $ETH