$ETH Volatility intensifies, following BTC's bearish trend!
The holiday is over, and there hasn’t been much movement in Bitcoin's market, but new developments are expected soon. First, regarding news, the Sino-U.S. trade negotiations are the main event. If an agreement is reached, the previous drop will be considered a golden buying opportunity; if the talks collapse, the market will continue to decline, as cryptocurrencies are not yet a reliable safe-haven asset; in times of turmoil, we must still look to gold. Therefore, the market is currently focused on the negotiation results, and subsequent developments must be closely monitored.
Now, regarding market positions, the current situation is one of consolidation. Bears have not rushed to enter the market; there are hardly any short positions below 109,000, with scattered shorts piled around 107,000-108,000. In contrast, bulls have amassed a large number of positions around 101,000. From a liquidation perspective, it is clearly more profitable to push down on the bulls. So, the short-term rebound can only reach 107,000-108,000 at most; if this level cannot be surpassed, it will surely lead to a downward push on the bulls, and in extreme cases, it could drop below 100,000.
The technical outlook is also not optimistic. The weekly chart does not indicate a significant increase; instead, it looks like it may be reaching a peak. If there is a weekly-level correction, it could directly head towards 96,000 to find support, or it may consolidate sideways. The daily chart is currently in a correction cycle; although the MA30 is temporarily holding, this is a typical large support level of indecisive market behavior. Do not expect a rise until it breaks above 107,588, especially since the candlestick has formed a downward three-method pattern. The daily level must see bulls increase their volume to reverse the trend. The four-hour chart is even clearer; it shows consolidation, with moving averages stuck together. This morning, it reached a high and met the MA120 before coming down. The MACD has been fluctuating in the bullish cycle for a long time without increasing volume, and after hitting resistance, it has to continue to decline.
Overall, the market is in a weak consolidation phase, and the strategy is definitely to prioritize short positions, with long positions as a complement. One can start to position around 106,000, while keeping an eye on whether new lows will be made; if new lows appear, the liquidation of bulls will be more severe. Ethereum has been quite active recently, with sharp rises and falls, and both bulls and bears are battling fiercely, but the major trend still follows Bitcoin. The strategy should also prioritize short positions, and around 2620, one can try small positions.
Recently, I plan to position for a potential coin that is ready to explode; doubling is quite simple, and an expected gain of over 10 times is not an issue. If you want to follow along, please like and leave a comment for free sharing!
