Bitcoin Evening Outlook

After Bitcoin broke down from the bearish flag pattern in the evening, attempts to rebound back into the range were unsuccessful. Subsequently, a bearish engulfing pattern formed at the lower support area, and the current trend continues to decline.
The first short-term resistance is near the lower boundary of the flag at around 66,885. Although there has been a pullback, it has not yet broken below the key support zone of 66,000 neckline and 65,590. As long as this zone holds, the short-term decline is unlikely to further accelerate.
If this support is effectively broken, it is highly likely to test the previous low of 64,930. If that low is also broken, the downside space will open up, with potential retests around 62,000 or even 60,000. Only a return to within the flag pattern can stop the current downtrend. To achieve a meaningful rebound, a break above the 67,481 resistance level is necessary; otherwise, the rebound potential remains limited.
Trading suggestions:
- Enter long after a volume breakout above 66,906, targeting 67,887-68,836
- Short if it breaks below 66,060, with a stop loss at 67,287, and take profit at 65,000-64,162
- Wait for a rebound to the 67,889-68,563 zone to enter in batches; currently, chasing short positions directly offers a poor risk-reward ratio unless a clear break below 65,000 opens up space
- Only if the hourly chart stabilizes above 66,906 can there be upward momentum; if the 4-hour chart breaks below 66,199, look towards the 64,924-63,815 range.