Thursday Morning Strategy: Bullish momentum slows down, initial pullback followed by buying on dips

Time flies, and it’s already mid-January. Today is Thursday, good morning, wishing everyone successful trading and stable mindset.

In the past two days, the bulls have continued to exert strength, and market sentiment has noticeably warmed up, with Bitcoin pushing up to near the 98,000 level. During the early hours, the bulls extended their momentum again, with the price reaching a high of around 97,900 before pulling back. Currently, it is consolidating around 97,000.

From a structural perspective, after completing a bottoming rebound, the short-term bullish pattern has been established. On the 4-hour chart, the candlesticks are oscillating upward along the upper Bollinger Band. Although there have been pullbacks, they were quickly recovered. The Bollinger Bands are opening upward, and the moving averages and indicators are aligned bullishly, indicating that the overall trend remains strong. However, signs of slowing momentum at higher levels are emerging, making chasing longs less cost-effective. It’s more suitable to wait for a pullback before re-entering.

In terms of trading approach, the intraday strategy is to first watch for a pullback, then consider buying on dips.
Consider attempting short positions in the 97,300–97,800 range, targeting the 96,000–95,000 zone. If the downward momentum weakens after reaching that area, it’s safer to switch to long positions at a more appropriate time.