Bitcoin and Ethereum Face Critical Technical Breakdown at Beijing Time – Market Correction Deepens

Bitcoin’s Technical Crisis: Bears Take Control as Key Support Yields

At approximately 1:10 AM Beijing time, Bitcoin price has retreated to $87.54K, marking a significant bearish reversal after previously testing the $123,000 resistance level. The daily candle structure reveals a critical turning point: the price has decisively broken below the previously established support zone, triggering what appears to be a cascading forced exit event among leveraged long positions.

The technical setup tells a compelling story. Bitcoin formed a prominent neckline pattern at the $123,000 level, where aggressive bullish traders liquidated their positions to lock in substantial gains exceeding 10,000 points. However, this high-level consolidation has given way to downward pressure. The daily chart now shows the price trading between the upper Bollinger Band track near $122,000 and the middle band around $117,000, with each rejection at resistance intensifying the bearish narrative.

The four-hour timeframe paints an even more concerning picture for bulls. The rapid descent from elevated levels directly down to the Bollinger Band lower track at $117,000 indicates institutional selling or algorithmic pressure. If this $117,000 support level fails to hold, the next critical test becomes the medium-term EMA60 support positioned at $113,650. Traders monitoring this level should prepare contingency plans, as a breakdown here would confirm a deeper correction phase.

Trading Strategy: Two-Sided Approaches for Volatile Conditions

Northbound (Long) Positioning: Traders waiting for reversal confirmation should monitor the $112,500 to $112,000 zone for entry signals. A protective stop loss should be placed at $111,500 to limit downside exposure to 500 points. Initial profit targets cluster around $113,000 to $113,500, with an extended breakout target at $114,000 for those maintaining positions through volatility.

Southbound (Short) Positioning: The continuation move lower offers opportunity for tactical short entries between $119,000 and $119,500. Risk management requires a stop loss at the $120,000 level, capping losses at 500 points. Target zones are positioned at $118,000 to $117,500, with additional downside exposure if the $117,000 support capitulates and $116,000 becomes the next retest level.

Ethereum: Pullback Offers Strategic Reentry Opportunity

Ethereum currently trades at $2.93K, facing similar technical pressure as Bitcoin at this Beijing time checkpoint. The recent sharp rally tested resistance around $4,750, but the pullback has provided clearer entry parameters for new positions. The daily EMA15 trend line at $4,150 represents critical medium-term support that should hold to maintain the broader uptrend structure.

The four-hour chart shows Ethereum consolidating near the lower EMA30 support at $4,450. The Bollinger Band channel has tightened, with the upper track now acting as resistance pressure around $4,682. This compression typically precedes significant directional movement, and traders should monitor whether support holds or gives way to a deeper test toward the lower band at $4,170.

Ethereum Trading Parameters: Patience Rewards Discipline

Short-Term Southbound Strategy: Trial positions should be sized into the $4,700 to $4,750 zone. Protective stops above $4,800 allow for a 40-point risk envelope. The initial downside target rests at $4,650 to $4,600, with extended losses possible if $4,550 support breaks definitively.

Recovery-Phase Northbound Strategy: Traders rejecting the previous resistance rally are advised to wait for the next support test before initiating fresh long positions. Trial entries in the $4,270 to $4,220 range make technical sense, with stops at $4,160 (40-point risk). Upside targets span $4,350 to $4,400, with $4,450 marking the decisive breakout level that would suggest resumption of the prior trend.

The overarching lesson for both assets: avoid emotional decision-making driven by volatile intraday swings. Let technical levels dictate entry timing rather than FOMO impulses. The current Beijing time session presents both liquidation risks and controlled entry opportunities for patient traders who respect risk parameters.