BTC double top under pressure! 111,000 becomes the key line for the Bull vs Bear Battle, investors need to be wary of reversal risks.

Currently, BTC has reached a critical technical node, forming the preliminary double top pattern in the range of 110600-110700 on the 1-hour cycle. The long upper shadow left after reaching the high point of 111288 further highlights the pressure intensity in this area. Although a strong bullish candle was recorded on the daily level the previous day, the doji candlestick that appeared during today's session reveals that bullish momentum is beginning to become cautious, and the resistance near the previous high point of 111300 remains quite significant.

In-depth Interpretation

1. Signals conveyed by candlestick patterns:

- The double top structure on the 1-hour timeframe has initially formed, with the 111000 level becoming an important short-term resistance, making it difficult to break through.
- The appearance of a daily candlestick doji indicates that the forces of bulls and bears are gradually balancing, and the market is approaching a turning point.
- The 109500 level serves as an important support for the recent market. Once it is breached, it will weaken the bulls' confidence and become the "last line of defense" for the bulls.

2. The trend implied by technical indicators:

- Regarding the MACD indicator, the momentum in the 1-hour timeframe continues to weaken, indicating insufficient short-term upward momentum, while the daily level remains in the bearish zone, and the overall trend has not yet clearly turned.
- On the RSI indicator, the 1-hour period has fallen from the overbought zone of 71 to around 60, indicating a certain release of short-term overbought risk, but it still needs to be observed whether it can be maintained in the future;
- From the perspective of the moving average system, the 1-hour period moving average shows signs of a golden cross, indicating a potential slight rebound demand in the short term, but the daily level moving averages are still in a bearish arrangement, and the medium to long-term trend remains unchanged.

3. The capital flow reflected by trading volume:

- During the previous stage of the market surge, the trading volume expanded to 594, indicating that there was capital actively testing the market, driving the price upward;
- In the subsequent pullback process, the trading volume remains at the 452 level, indicating that the selling pressure in the market has not completely dissipated, and some funds are still choosing to exit.
- The current trading volume is only 12% of the previous peak, and the trading activity is severely insufficient, making the probability of a direct breakthrough of the key resistance level low in the short term.

💰 Practical Operation Strategy Suggestions

⚠️ Key Market Alert

- Current Rhythm: The 1-hour level is in a sideways consolidation state, oscillating within the overall range of 111800-108800, with no clear direction at the moment;
- Key Points:
- Resistance above: Focus on 111000 first, if broken, can further look to 111800;
- Support below: Pay close attention to 109500, followed by 108800;
- Trend Break Line: 108500. Once the price breaks below this level, the market is likely to turn to a bearish trend.

Position Risk Control Discipline

- The position for a single trade must not exceed 8% of the total funds to avoid excessive concentration risk;
- Leverage usage shall be controlled within 3 times, and it is strictly prohibited to amplify risks due to impulsive trading;
- When a single trade profits over 3%, it is recommended to reduce the position by half, lock in some profits, and lower the risk of a pullback.

It is important to note that the current market volume cannot support a direct price breakthrough, and the market is more likely to fluctuate repeatedly within the range of 111800-108800 to wash out weak hands. Only after cleansing the uncertain positions through volatility will a clear direction of movement be chosen. Be sure to set stop-loss levels during operations and firmly avoid holding onto losing positions. In a sideways market, it is even more important to follow the principle of "take profit when it’s good" and avoid greed and prolonged battles. (All point spacing has been reasonably calculated, and risk control logic is clear, which can be dynamically adjusted based on actual market conditions.)

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