Wednesday, December 17th Bitcoin Afternoon Analysis and Commentary

The morning outlook was bullish. After a slight pullback and a rebound, I remain confident in a bullish trend. Currently, Bitcoin is oscillating above 86,000. After testing the bottom at 85,857 and then rebounding, it has gained some upward momentum, indicating strong support below. From the volume perspective, during the recent decline, trading volume did not continue to expand, and selling pressure gradually weakened. During the rebound, volume slightly increased, showing signs of capital inflow. The short-term downtrend may be reversing.

From a technical perspective, on the 4-hour chart, the price quickly recovered after testing the lower Bollinger Band. It is now trading between the lower and middle bands of the Bollinger Bands. The bands are beginning to converge, which suggests a likely breakout after a period of consolidation. The KDJ indicator's three lines have formed a golden cross and are diverging upward, indicating increasing bullish momentum in the short term. Combining this with the support level formed at previous lows, a slight pullback is likely tonight, but the overall trend remains bullish. Maintain a cautious bullish outlook!

For Wednesday afternoon, it is recommended to go long near 86,000-86,500, with targets around 88,000-89,000.