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Bitcoin is currently facing significant resistance around 116980, and technical analysis shows clear bearish signs.
In the short term, the one-hour candlestick chart for Bitcoin shows a bearish engulfing pattern, combined with a double top structure, indicating that the recent upward trend may have come to an end. Even more concerning is the continuous decline in trading volume, reflecting a weakening of market interest, which could undermine the momentum for a bullish rebound.
The 118868 area has formed a strong resistance zone, with insufficient buying support and bears seemingly in control. From the perspective of technical indicators, multiple fall signals have already appeared: the RSI has fallen below the 50 midline and continues to decline, and the KDJ indicator has formed a death cross and shows a diverging trend, all of which confirm the persistence of the bearish trend.
If the price cannot reclaim the EMA52 moving average in the short term, the next downside target may be the 114640 support level. Investors should be wary of bears potentially exerting further pressure, as market sentiment has turned pessimistic. It is recommended to closely monitor the breakthrough of resistance levels and changes in trading volume.
In the current market situation, investors need to remain cautious, closely monitor market trends, and manage risks effectively. At the same time, they should pay attention to potential reversal signals to seize possible investment opportunities in a timely manner. In this uncertain market environment, it is crucial to stay calm and rational.