Bitcoin 3.12 Afternoon Market Analysis

Bitcoin continues to weaken in the afternoon, and the trend is completely in line with expectations!

From the early high of 71286, it has been on a relentless downward move, with continuous bearish candlesticks directly breaking through the moving average support. The bears have no resistance at all; a typical rebound is just giving the bulls a chance to buy the dip.

Technically, the KDJ dead cross is diverging downward, and the bearish momentum is fully dominant. Considering the previous surge from 60,000 to 74,000, the technical indicators are already overextended. The main theme moving forward is a trend-following correction, which is currently not realistic!

The situation in Iran remains tense, with oil tankers being attacked and oil exports hindered, igniting risk aversion sentiment due to geopolitical risks. However, funds are more inclined to take profits at high levels. Heavy selling pressure at high prices combined with overbought technical conditions creates a double resonance, making a decline inevitable. Follow the trend for short positions, with long positions as a supplement.

Rebound around 70,100 - 70,600, gradually building short positions. The first target is 68,500, and the second target is around 67,000.