Currently, BTC is still basically in an overbought zone in this area. And after consolidating here for a few hours, the upward momentum is insufficient. So we should still look at the momentum potential of this pullback. First, watch the area around 775; next, watch the strong support around 768. The trading idea is still mainly to buy the pullback. Right now, the area above is basically a vacuum zone, but the momentum is not enough.

As for the factors behind this pump, first is the repeated fluctuations in the geopolitical situation, and capital flowing toward risk markets. Second, the short-squeeze move: the early-morning half-hour price rise triggered about $450 million in futures short liquidations. After the level was broken, it formed an automatic liquidation chain reaction, pushing the price higher. Third, institutions continue to add positions.

Still follow the long strategy at the high level given this morning. If it hasn’t fully pulled back yet, aggressive traders can lay a trap for a short around 780, with a small stop-loss near 785, and watch the target at 768!