Morning thoughts for Wednesday, August 20

Recently, the market for Bitcoin has been continuously dominated by bears, showing an overall weak downward trend. Even occasional small rebounds are unable to change the prevailing decline, as there is still a lack of substantial rebound momentum. After the price fell below the crucial support level of 113,000 yesterday, there was no rapid continuation of the decline; instead, it entered a low-level consolidation phase. This trend is more likely to be a bear's "trap for buyers to accumulate" strategy, appearing to offer a bottom-buying opportunity while actually concealing the risk of further downward movement. Caution is necessary, and one should avoid blindly entering to catch the falling knife.
From the current pace, the bearish pressure has not yet been fully released, and a bearish outlook can continue today.
It is recommended to strategically place a short position around 113500, with an initial target looking towards the 112000 level. This position is both the lower edge of the previous consolidation range and a short-term psychological support level.
If the price falls below 112,000, be wary of the shorts accelerating downward; you may follow the trend, with the target extending to the 111,000-110,000 range. When operating, be sure to set stop-losses strictly to prevent risks from sudden market rebounds.