Bitcoin dipped to around 76,800 last night, near the support level, and then quickly rebounded. During the day, the rebound pushed up to a high of 78,600; currently, it is trading in a range around 78,366.

After the sharp drop, the market formed a deep V-shaped technical rebound and correction. The price quickly recovered more than half of the losses, but the overall rebound momentum is still relatively weak. The previous high overhead acts as heavy resistance, and the overall bearish larger trend has not reversed. The risk remains very high that after a push up, the price will again face pressure and fall. In terms of execution, the main strategy is still to sell short near the highs of the rebound; only when low-level support has stabilized should you consider short-term long positions as a secondary option.

At present, the short-term rebound is gradually nearing a strong resistance zone. Upward momentum is starting to fade, making the risk-reward of chasing longs extremely poor. Any time now, heavy selling pressure at high levels may again develop and release.

Trading suggestions

Sell short on the rebound between 78,500-79,000. The first target is 77,800. If it breaks, follow the trend and look for around 77,300.
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