Ethereum falls beyond expectations, Trump and Musk clash in a public feud
Ethereum has dropped to the previous low support from mid-May, with a line price of 2410, exceeding the last overbought correction. A bullish divergence signal has appeared, but a bearish signal has yet to be triggered. The decline is sufficient, the position has been reached, but we cannot conclude that it is the 'bottom' yet. This is the fourth time selling has occurred.
Although this correction was somewhat expected, it ultimately resulted from the public feud between Trump and Musk causing the market to decline. However, I still believe that the two drama queens are just acting; in reality, they are on very good terms. Musk and Trump have an unbreakable alliance; nothing can sever their relationship. Currently, all the so-called verbal battles are for show, intended to create topics and increase public attention on them. This is merely a politicized influencer publicity stunt; after all, there will always be countless opinions during market downturns.
Finally, let's discuss the trading strategy for the market.
Observing the BTC daily chart, Bitcoin is showing a continuous downward trend, with this decline being the first to touch the 100,000 mark. Overall trend analysis indicates that a three-wave downward structure has been completed, and a downward channel has been established. In the four-hour structure, Bitcoin's bearish momentum is increasing, and the 100K mark is crucial. In the short term, attention should be paid to the stability of the support level below; if it breaks, further declines are expected. If the market rebounds to 104.5K, a short position can be considered, provided there are no other narratives pushing for an increase.
There is nothing particularly noteworthy in this market; ETH and altcoins are still following Bitcoin's lead. Just keep a close eye on Bitcoin's movements.
The main focus should be on the non-farm payroll data release tonight. If the data is good, the market may rise, and a rebound to yesterday's position is possible. Therefore, those currently holding positions should not be overly worried. If the data is too poor and the Federal Reserve does not step in to save the situation, the market will continue to decline. It is not recommended to buy spot assets right now; suitable bottom-fishing opportunities will be notified separately.
Currently, the market is filled with short positions, so caution is still required.
