July 16: CPI exceeds expectations + Legislation will take effect! BTC holds firmly at the critical line of 112, brewing a rebound; ETH breaks out with volume, lifting altcoins; Is the L2 + AI sector signaling a buy opportunity?
Technical Analysis:
BTC: The day before, it surged and fell, closing with a long upper shadow small bullish candle. Yesterday, the decline continued, currently hovering around the 7-day moving average. The recent two days of pullback can be interpreted as short-term profit-taking, and also a repair of the technical gaps following last week's significant rally, without breaking the overall upward trend. The important defense line in the short term for the daily chart is at 1135. From the 4-hour chart perspective, before the market takes off, it builds a support platform around the 112 level, which can be characterized as the life-and-death line for bulls. Currently, the market is in a technical pullback stage, with a stop at the 116 level, and it is expected to build a small platform. Intraday operations can look bullish near 116, with key upward resistance at the 120 level.
ETH: After 5 days of volatile adjustments, the continued rise in the early morning has achieved another breakthrough. The daily chart shows a significant bullish candle with strong upward momentum. However, ETH is about to face selling pressure in the 3200-3400 range; caution is advised for potential pullbacks after a high surge, but major corrections are not expected. Overall, the trend will maintain a continuous upward movement, and the daily K-line pattern may produce a long upper shadow bullish candle. Looking at the 4-hour chart, the overall trend shows an increase in volume, with a slight pullback, and bullish sentiment is good. Intraday operations should pay attention to support around 3080-3050 for a bullish outlook, with key resistance at 3150-3180.
Altcoins: Bitcoin is entering a high-level volatile adjustment, while Ethereum is aggressively attacking, indicating that market liquidity is shifting towards Ethereum and altcoins. The rotation in the altcoin sector has begun, with a focus on the staking segment, particularly LDO; recently promoted L2 segment OP experienced a volume increase last week, followed by a phase of adjustment, constructing a platform, and today it has seen a slight breakthrough upward, which can still be monitored. The artificial intelligence sector will remain a hotspot this year, with INJ's trend similar to OP, deserving of close attention. More quality targets are welcome for discussion!
The cryptocurrency market is highly volatile; enter with caution; this is a personal opinion and not advice, for sharing purposes only.
