February 20th Midday Market Analysis

Bitcoin yesterday retested its previous low, effectively testing support for a second time. Buying interest absorbed the dip, and then a rebound began. It has now stabilized above 66,790, breaking through a bullish pattern, indicating a short-term bullish trend. The most critical level now is 67,319, which is the neckline of a small W-bottom pattern. Holding above this level with increased volume would confirm the rebound, opening the chance to target 68,485. Only a break above 68,485 to set a new high can unlock a larger upward space and challenge higher levels.

If it cannot break through 67,319, it will likely trade within a narrow range between 66,790 and 67,319; a breakout above 67,319 would shift the trading range upward to 66,790-68,485. As long as it doesn’t fall back into the previous consolidation pattern, there’s no big problem; but if it drops back, caution is needed as it may test 65,298 again. A breakdown below that would significantly increase the risk of further decline.

Trading strategy is simple: a volume breakout above 67,319 suggests going long; if it falls below 66,900 and cannot rebound back, consider shorting with strict stop-loss. On the hourly chart, if it stabilizes above 67,319, look for targets around 68,360-69,297; on the 4-hour chart, a breakdown below 66,701 suggests targets at 65,835-65,042. Bitcoin resistance levels: 67,319, 68,360, 69,297; support levels: 66,690, 65,780, 64,161.

Now, looking at Ethereum, its trend is relatively mild. It is currently moving within a trumpet-shaped pattern. As long as it doesn’t continue to decline, that’s a good sign. To strengthen, it must break through 1,987, which could then target 2,012 and the upper boundary of the pattern.

Trading points: a breakout above 1,958 suggests going long, with stops set properly; if it falls below 1,947, consider shorting. A successful retest of 1,900 support can be an entry point for longs, with stops below 1,867. Light positions can be taken short around 2,037, with stops above 2,071; a low point at 1,843 on the left side can be used for a long position, with stops below 1,811. On the hourly chart, if it stabilizes above 1,962, targets are 1,998-2,037; on the 4-hour chart, a breakdown below 1,938 suggests targets at 1,902-1,863. Ethereum resistance levels: 1,962, 1,998, 2,037; support levels: 1,937, 1,900, 1,869.