Bitcoin has recently shown multiple signals of stage-wise stabilization. The current rebound correction has approached the natural rebound level of the first decline at 94,000. If this rebound remains strong, it will typically extend to around 98,000, which is the 0.382 Fibonacci retracement level.

From a technical perspective, the three-day moving average has once again closed with a bullish candle and stabilized above EMA7, which is a positive signal. The key now is whether it can effectively break through that red price division line — this line determines the sustainability of the rebound.

It is important to note that although we previously closed out our short positions, this does not mean we should chase longs at this point. The market is still testing resistance levels, and it is much wiser to stay cautious and observe rather than blindly chase the rally. Waiting for a clearer breakout confirmation is better than chasing high to catch a rebound.