Recently, the cryptocurrency market has shown a significant upward trend, with Bitcoin experiencing a strong pump from last night to early this morning, while Ethereum has once again broken through its previous high. In this market environment, how investors can correctly grasp the long and short directions has become a key issue.

From a medium-term perspective, Bitcoin exhibits characteristics of a strong pump followed by a consolidation phase on the 4-hour cycle chart. Although there are certain signs of stabilization at present, the long upper shadow on the candlestick chart clearly indicates significant selling pressure. Meanwhile, the shrinking trading volume also raises doubts about the sustainability of bullish momentum, necessitating further observation of market trends.

In the short term, the 1-hour chart for Bitcoin shows that the price volatility has significantly narrowed, and the bullish momentum has basically been exhausted. This suggests that the market may face a correction demand in the short term. In terms of technical indicators, the KDJ indicator is in the overbought zone, indicating a risk of correction in the short term. At the same time, the MACD histogram continues to shrink, and the bearish momentum is gradually increasing.

It is worth noting that the chip distribution indicator shows strong resistance around $118,974, and the current price is close to this resistance level. Although the price is currently above both the EMA24 and EMA52 moving averages, the upward pressure faced should not be ignored.

Regarding Ethereum, its recent performance has also been strong, but it faces similar technical pressures. Investors need to consider these technical indicators and market sentiment comprehensively when making trading decisions, and operate with caution.

Overall, although the cryptocurrency market has shown an upward trend recently, there are still risks of a pullback in the short term. Investors should closely monitor market changes, manage risks appropriately, and avoid blindly chasing highs. At the same time, they should also be vigilant about potential sudden market movements and maintain a flexible trading strategy.