The market was hit by unfavorable news at night, and the price of Bitcoin continues to decline. If it cannot stabilize above the $1200-1205 range by midnight, the market outlook may worsen further. A bearish engulfing pattern has appeared on the daily chart, the candlestick trend is strong, and the KDJ indicator is also showing a death cross signal, all of which are concerning signs.

The 4-hour chart has broken through a key support level. If the subsequent rebound is insufficient, the bearish trend on the daily chart may engulf the entire previous upward momentum. While this may sound a bit pessimistic, investors should indeed be prepared for risk control.

In the short term, although there are signs of a halt in the decline, the rebound is limited. If the market enters a consolidation period, it may be more favorable for the bears. After all, there has been almost no rebound following a drop of thousands of points, and the current consolidation may just be preparing for further declines after the engulfing pattern is completed on the daily chart.

If the low point of 115 dollars is broken, the next support levels to watch will be 112, 110, and 107 dollars. In this uncertain market environment, investors need to remain vigilant, closely monitor market movements, and adjust their investment strategies in a timely manner.