Technical Arrow Analysis: Key Turning Points in BTC and ETH Midday Market Trends

The market fluctuates under the guidance of key arrows, with each pattern conveying the next trading signal to traders. At this stage in late February, both Bitcoin and Ethereum face important technical thresholds. Understanding the directions indicated by these arrows is crucial.

Bitcoin Key Turning Point: Triple Tests After Arrow Breakout Failure

Although Bitcoin broke through the high point indicated by the left arrow, creating a new higher high, the closing price did not stabilize above the resistance at 68,523. From the current price of around $66.13K, this upward breakout shows signs of a false breakout. The momentum did not continue upward after the breakout; instead, a bearish engulfing pattern (yellow box) formed, signaling a clear reversal.

Bitcoin then attempted a second upward breakout but again failed to surpass the previous high indicated by the white arrow, forming another bearish engulfing pattern (white box) and breaking below the recent triangle pattern. The current situation can be summarized as:

New Support and Resistance Layout:

• The lower boundary of the triangle has become the new resistance for Bitcoin; whether it can re-enter the triangle will determine the next direction.
• If it re-enters the triangle, there is room for further upside.
• If it cannot, the next test is at 67,449.
• Once 67,449 is broken, the price may continue down to 66,697.
• If 66,697 cannot hold, the price will test the support zone between 65,595 and 65,232.

Based on the technical arrow signals, we are currently at a critical decision point.

Multi-Timeframe Trading Guide: Price Levels Indicated by Arrows

Hourly Trading Strategy: After Bitcoin breaks and stabilizes above 68,430, the target moves toward the 69,318–70,250 zone, which is the upward arrow guidance on the hourly chart. But this is only valid if it breaks and holds above 68,430; otherwise, the target becomes invalid.

4-Hour Downside Risk: If the price falls below 67,675, the 4-hour arrow points downward, with subsequent targets at 66,598–65,089. Currently, the 24-hour decline has reached -2.93%, indicating increasing downward pressure.

Trading Execution Logic:

• A volume breakout above 68,228 can be considered for long entries on rebounds, with a stop-loss at 67,505.
• If 67,505 is broken on high volume, consider short entries; if a rebound fails to reclaim 67,505, stop-loss is necessary.
• These price levels indicated by arrows are critical support/resistance lines; stop-losses must be set properly.

Support and Resistance Zones:

• Resistance: 68,430–69,318–70,250
• Support: 67,511–66,618–65,678

Ethereum’s Pattern Dilemma: Support Tests After Flag Break

Ethereum is currently at $1.96K, with a 24-hour decline of -4.75%, facing a more complex technical pattern than Bitcoin.

Daily Chart Analysis: A volume-supported breakout at 1,974 suggests a long position, with a stop-loss if it drops back below. However, the actual situation shows a volume-supported breakdown at 1,968, with the arrow pointing downward, indicating a bearish bias. The key support is at 1,921; a retest confirming support can add a position, but a break below 1,875 requires stopping out.

Hourly Breakout Targets: After breaking above 1,985, the next targets are 2,004–2,039, but attention should be paid to resistance at 2,029. If touched, consider short entries with a stop-loss above. Traders who entered long at 1,846 can hold if the price stays above 1,819; otherwise, stop-loss is needed.

Support and Resistance Distribution:

• Resistance: 1,985–2,004–2,039
• Support: 1,954–1,905–1,871

4-Hour Key Break: Below 1,959, the next downside targets are 1,908–1,863. More importantly, Ethereum on the 4-hour chart shows no real intention to break upward; the candles within the white box are invalid oscillations. To resume an upward move after breaking the flag, the price must return inside the flag for consolidation.

As long as ETH stays above 1,961–1,940, it won’t make new lows. If support fails, expect a retest at 1,905, and if it cannot hold, a drop to 1,865.

Core Trading Principles: Follow Arrow-Guided Price Levels for Stops and Targets

Whether trading Bitcoin or Ethereum, adhere to these core principles:

1. Stop-losses come first: Each arrow-indicated level has technical significance; breaking it signals a change in trend.
2. Scale into positions: Use multiple entries at key arrow levels rather than full positions at once.
3. Multi-timeframe confirmation: The directions indicated by hourly and 4-hour arrows should align.
4. Volume confirmation: Breakouts with volume are meaningful; rebounds without volume are not reliable.

Every arrow in the market reflects supply and demand shifts. Understanding what these arrows imply helps better grasp the trading direction. The market is at a critical turning point now—strictly follow the technical signals and manage risks carefully.