Today, Bitcoin deceived and turned bearish, Ethereum was leaking oil and had been covering for Bitcoin yesterday, but today it crashed directly, dragging down the altcoins. Pay attention to market data, trading volume is 3.28 trillion, down 17.5%, BTC's market cap share has rebounded to 63.48%.
The following chart shows BTC fluctuating between $104,000 and $103,000.
Tariffs and downgrades currently have no impact on the crypto market, but history shows that downgrades can lead to short-term declines in risk markets, and the impact on the crypto market remains uncertain. After past downgrades, BTC experienced a maximum decline of about 1% on the first day, quickly recovering, with less impact than the US stock market. However, currently, BTC is more closely correlated with the US stock market, especially after the ETF approval. Therefore, it is still advisable to be cautious.
Currently, support is solid, with the maximum holding range between $93,000 and $98,000. Investors are not exiting densely, and there is no panic sentiment among investors yet.
During this wave of market fluctuations, investors should keep up with the rhythm, paying attention to Bitcoin's support levels (such as $10,139.8, $10,700) and resistance levels ($10,500). Look for opportunities to buy or go long near the support levels, while setting stop losses to protect funds.
If Bitcoin fails to break above $10,500 and then rebounds, you can continue to short, but be mindful of the short-term rebound that may be caused by oversold signals.
ETH's rise last night was to eat up the short liquidity above, and a large short position at 2620 was liquidated, reaching a maximum price of 2649.
It only pulled back to around 2480 in the middle of the night, completely in line with what I said in yesterday's article (Powell ignites the market! Bitcoin stabilizes at 103,000, Ethereum fights back to $3000! The myth of becoming rich at 8647, NXPC earns $760! Believe suffers a 70% loss!).
ETH is fluctuating between 2620 and 2480. The 2480 position has received strong support multiple times. Liquidity is scarce on Saturday and Sunday, and if it breaks down, it may trigger large sell-offs. Currently, on the ETH liquidation chart, short users have added back short positions, and the liquidation funds are more than double the long positions.
For ETH, focus on the 2480 support level. If it breaks down, the next support is at 2423, and if that breaks, it may go to 2180. However, there are too many short positions, and the decline will definitely not be smooth; it is estimated that it will first rise to clear out short users before falling.
I did not short during this wave of altcoin pullback, as I did not want to break my trading discipline and did not short during the pullback before a clear trend change.
PORTAL and REI have made the gain list, followers who jumped in have made a fortune!
Last night and this morning, I scanned some small altcoin markets and made two mid to short-term long trades. When mainstream altcoins pull back, small altcoin groups often take this opportunity to rally. I selected two with relatively good structures, and both made the gain list today, which helps to offset this pullback.
Let's talk about a few altcoins:
XRP
Fluctuating within a small range, based on the previous bottom construction and the rise and fall performance, it seems poised to start a new round of upward movement, launching an assault towards the trend line, indicating the arrival of a new market situation. However, this currency's progress is relatively slow, and perhaps it would be wise to consider temporarily exiting after this main upward wave ends. After all, it has a large market cap and high safety, but its rise is also relatively steady.
SUI
As for SUI's trend, it seems frightening, but in reality, it is not. The true peak often does not have a fixed shape but is chaotic and disorderly. The current orderly pattern is likely a trap set by market makers. Based on this judgment, SUI is expected to challenge the double top near 5.
DOGE
Dogecoin failed to maintain its upward momentum, leading to poor overall performance in the Dogecoin sector. However, the future of Dogecoin is still worth looking forward to, which can be inferred from Tesla's stock price and Elon Musk's thoughts and life journey.
