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Bitcoin has entered a critical phase of trend reversal on the four-hour chart. The price is oscillating around the Bollinger middle band at 87,250, testing back and forth. As the distance between the upper and lower bands continues to narrow, volatility has been pushed to a low level. From the MACD perspective, the two lines are tightly hugging above the zero line, and the histogram is nearly disappearing. This indicates that the bulls and bears have temporarily reached a certain balance, but such balance usually does not last.
The support and resistance levels are clearly defined. The first resistance is the Bollinger upper band at 88,080, which resonates with recent highs, making it a relatively strong resistance. The first support is the Bollinger lower band at 86,615, which coincides with the low from four hours ago, forming a solid support. The round number at 87,000 can be regarded as a dividing line between bullish and bearish sentiment.
To signal a clear bullish trend, two conditions must be met simultaneously: the price must break through the resistance at 88,080 with increased volume, and the MACD must form a golden cross above the zero line with an opening that appears to be widening. Conversely, if the price's body falls below the support at 86,615 and the MACD forms a death cross and diverges downward, it is a clear bearish signal.
From a trading perspective, the logic for going long is as follows—once the price breaks above 88,050, you can consider opening a long position in the range of 87,600 to 87,800, with an initial target of 89,500. If momentum is truly strong, it can even aim for the 90,000 round number. However, stop-loss must be strict, set below 87,200, and not moved. For short positions, if the price falls below 86,500, you can open a short in the rebound zone between 86,800 and 87,000, with the first target at 85,500 and the second at 85,000. The stop-loss should be placed above 87,200.
This is a critical moment before the trend reversal. It is advisable to use about one-third of your usual position size to test the waters. If the price continues to oscillate between 86,500 and 88,000, it’s best to stay on the sidelines and wait for a genuine breakout. Regardless of the situation, all stop-losses must be properly set—that is the bottom line.