Brothers, last night the cryptocurrency market was like a river of blood! Bitcoin dove down without blinking, directly breaking through the 100,000 mark! The latest price stopped at 105533, with a low even hitting 105010; it was like a (night of horror in the cryptocurrency market)! The reason lies in the joint explosion of two 'nuclear-level' sell-offs that turned the entire market upside down!
First explosion: The German government, 'The King of Liquidation', is crazily dumping goods, causing the market to bleed profusely!
The German authorities are undoubtedly the 'most ruthless market smashers'—in the last three days, they crazily dumped 16,000 Bitcoins from the national treasury wallet, which directly led to three major bearish candles! These people completely disregarded market prices, forcefully smashing through the important support levels of 108000, 107000, and 106000, truly resembling a real-life 'blood basin' that even the bone residue won’t be spit out!
They still hold 40,000 Bitcoins that have not been sold, which is like a 'Sword of Damocles' hanging over the market. As long as Germany continues to sell, the market will continue to shake! Official institutions leading the shorting is simply heartless!
Second explosion: The 'doomsday giant' Mt.Gox, which had been silent for ten years, suddenly opened its eyes!
What makes retail investors' scalp tingle even more is the resurrection of the former 'disaster' Mt.Gox exchange! This 'black hole of huge losses', which once swallowed 850,000 Bitcoins (valued at $450 million at the time), recently transferred 140,000 Bitcoins (now worth nearly $100 billion) to a new wallet! This money has been in 'hibernation' for ten years; once thrown into the market, it could instantly crush the entire Bitcoin buying pressure!
Although the official promise is 'gradual compensation', can the retail investors believe it? Back then, the Mt.Gox explosion caused countless people to suffer; this time, with the 'whale turning over', everyone is holding their breath: will this huge amount of Bitcoin crash the market to 'exchange for cash'?
Double shocks ignite panic, and the technical aspect collapses directly!
Two pieces of news came simultaneously, frightening the entire cryptocurrency market! Panic selling surged like a flood—everyone was just trying to escape; who cares about fundamentals? Technicals? All smashed!
The purple drop zone in the picture is visibly alarming, with support levels instantly turning into resistance levels, and the price directly smashing through the important psychological barrier of 106000! Panic sentiment is still fermenting, and the risk of further declines is extremely high unless a major positive news comes to 'save the market'; otherwise, it is difficult to say that the bottom has stabilized!
Trend prediction from a technical analysis perspective
From a technical analysis perspective, BTC's recent plunge has broken the previous upward trend line, and the price has once fallen below multiple key support levels. As shown in the image, after breaking below the watershed position, the price has shown a tendency to accelerate downward and is currently at a relatively low level.
In the short term, BTC's price has shown some signs of stabilization after approaching around 105010.0, with a possibility of forming a short-term bottom. However, market sentiment remains relatively weak, and the strength and sustainability of rebounds are yet to be observed. If the price can effectively break through the resistance level near 105547.0 in the short term, a rebound trend may be expected, testing higher resistance areas.
In the medium to long term, BTC's trend still depends on the combined effects of the macroeconomic environment, regulatory policies, and internal market factors. If the global economy can gradually stabilize and regulatory policies become clearer, BTC may be able to return to an upward channel. However, if the macroeconomic environment continues to deteriorate and regulatory policies tighten further in the near future, the BTC price may continue to decline, seeking lower support levels.
Emergency guide for retail investors to protect their positions:
1. Be wary of the 'German black hand' striking again! Keep a close watch on on-chain transfers; any significant transfers must be a bearish warning!
2. Keep a close eye on the compensation progress of Mt.Gox! Once retail investors start selling, it will become an 'immediate catalyst for a crash'!
3. Don't bottom fish! Don't bottom fish! Don't bottom fish! Panic sentiment has not dissipated; blindly bottom fishing = catching flying knives!
4. Set up 'defensive orders' to protect your capital! If it falls below 105000, immediately reduce positions; don't fantasize!
The cryptocurrency world does not believe in tears; it only recognizes harsh reality! With these two nuclear bombs hanging overhead, it will be difficult for the military to launch a major counterattack! If you want to survive, keep a close eye on these two lines! Want to recover losses? Follow us! Once there are changes in the market, the K-line judge will take you to see the dealer's hidden cards at the first opportunity!