Market Discussion
Good evening everyone, the enthusiasm for Ethereum has been high these days, and this time it seems to be more lasting than before. After the evening CPI announcement, Ethereum showed a trend opposite to Bitcoin, making a strong advance of over 50 points. Compared to Bitcoin, this wave of increase is still powerful, but I think it can only be considered a pleasant surprise; everyone can take profit while it's good. Surprises don’t come every day, after all, it's just a small rebound after Bitcoin's funds have been withdrawn from altcoins. Of course, it can still break and stabilize above 2556, just to mention.
Back to the market, let’s first look at the daily chart. Bitcoin is currently in a bullish continuation pattern on the daily K-line. I have mentioned that the daily trend is clear, with bullish volume normally weakening, waiting for a breakout after a period of stagnation, and I expect there is still one last wave left. At that time, the opportunity for bearish positions will truly arrive. The last wave mentioned here refers to breaking through strong resistance above or ending after breaking below the bullish continuation.
Therefore, making hasty bearish trades without confirmation of bearish signals is obviously unwise, and with such a clear major trend, why bother to take small profits? 😅
For short-term opportunities, let’s take a look at the 4-hour chart. We can see that after the bullish and bearish resistance levels were broken, they were immediately reclaimed, indicating that there is still contention for the price at this level. We need to wait for the W-bottom shoulder top to break 103850 for a clear subsequent trend; conversely, we should also not rashly anticipate a downward move.
On the 15-minute chart, the price is also under pressure at 103850, and there is currently a reversal signal. The bears are signaling the start of a downward trend, waiting for confirmation of support before officially correcting. Continuously monitor the support and resistance situation around 102500.
To summarize, this kind of price divergence, with the K-line moving repetitively, indicates uncertainty. However, when signals appear and align with the plan, one should enter the market; after all, the market is all about trial and error. Remember to set stop-losses.
Short-term breakout above 103850, looking to continue up to 106000. Support at 102400-102500, Ethereum breaks and stabilizes above 2556, looking to continue up to 2600-2640.