Bitcoin gradually retreated after rebounding to $119,800, hitting a low of $117,427, while Ethereum fell sharply after reaching $3,941, dropping more than $210 to a low of $2,731.
Last night, the crypto market experienced severe volatility, with sudden changes leading to a large number of liquidation events. According to statistics, a total of 156,647 investors were liquidated, with a liquidation amount reaching 450 million USD, causing market sentiment to shift instantly from excitement to panic, truly a 'bloodbath night'.
Yesterday, Sponge's strategy was high shorts and low longs, with Bitcoin's pressure zone: 119800-119300, support targets: 118000-117500. Right-right went long at 109750, making a quick profit of 2000 dollars. The profit may be small, but accumulated, it is still very considerable, and it's considered a good start to the week, taking profits and waiting for opportunities.
BTC
Yesterday, there was a large order at 117500, and the US market still hasn't pulled up, indicating that the market needs to rest. If key points can be regained, it will indicate that the bulls still hold the dominant power; conversely, if there is continued weakness in upward movement, the market may face downside risks.
Bitcoin is currently retracing to around 113% and started to rebound after the TD13 signal, now approaching the upper resistance level. Do not blindly long on the left side, focus on the current resistance area: if it gets blocked, prioritize high shorts; if there is a strong breakout, consider chasing longs.
Key short-term observation points:
1) If the 117000–118000 range stabilizes, it is expected to challenge 119500 again;
2) If this range fails, it may fall back to test **116000 (4-hour level support)** nearby.
Medium to long-term view: Current trend is still in a healthy correction phase, still inclined to continue upward, with a medium-term target near 130600.
Ethereum
The Ethereum Foundation transferred 1000 ETH to an internal related address, worth 3.88 million USD, suspected of being a sell-off. Whenever Ethereum rises, the Ethereum Foundation starts unloading; in previous transfers, Ethereum would experience a brief pullback, and today is no exception. In this bull market, the biggest short for Ethereum is none other than the Ethereum Foundation.
From the 4-hour cycle view, Ethereum experienced a spike and pullback after making a new high in the stage, but again accurately retraced to the MA60 moving average support. Since the counterattack started on June 24, ETH has not effectively broken below the MA60, indicating that the trend remains strong. Therefore, the short-term pullback is expected to at most probe down to around 3700, which is a normal consolidation.
After consolidation, ETH is likely to continue challenging the previous high of 3950, even hitting the 4000 round number. Breaking through 4000 is just a matter of time; it's recommended to continue holding spot positions firmly.
Ethereum faces resistance at 3820, 3860, 3900, 3950 above, with support at 3750, 3700 below; if it goes further down, it will be 3650-3600. Those who didn't catch the low long in the morning can look for a rebound to find a high point to short. For high shorts, find positions in batches between 3820-3900.
Altcoin
The current market is in a correction phase, and altcoins have consequently seen a significant drop. Overall, the altcoin sector has not yet entered a full-blown outbreak phase. During this stage, priority should be given to high-quality leading projects that continuously have external capital inflow, as they have better resistance to declines and potential upward space. Other small and medium-sized altcoins may need to wait until the market truly enters a FOMO sentiment before they will see concentrated opportunities for gains.
C recommended in the community group reached the first profit target of 0.395 today, entered at 0.326, successfully gained 21 units of profit, and can also help you soar against the trend during market corrections!
C has surged close to 20%, isn't that comfortable! For contracts, it's still recommended to take profits in batches. For spot, I want to assess the situation, as this coin is a Binance alpha launch, listed on Binance contracts in two days, and on Binance spot in five days, now also listed on Korean exchange 2, the underlying energy is definitely impressive!
Finally, Sponge recommends a few more mainstream coins, with slightly lower hanging points;
ENA: 0.5655, 0.5155; OP: 0.66, 0.61
On-chain:
COLLAT: A RWA project by a French company, has been horizontally trading for over ten million, with controlled supply. Yesterday morning, I saw unusual movements and addresses of interest entering, and after checking the official Twitter, I saw a preview of good news, so I chased around 18M. Today, there have been continuously monitored addresses (possibly with news) entering, and indeed, by 11 PM, good news was released to a high point. But I hesitated and didn't exit, observing the narrative, and it has been horizontal for a long time. Let's observe it further.
AOL: DEV is an advisor to WLFI, and previously verified the authenticity of the DEV address, when I invested a few hundred U with 1M, equivalent to a 'small lottery ticket', and then didn't pay much attention. Recently, WLFI's popularity has been continuously rising, and DEV has been actively voicing and promoting project progress, with the market holding an optimistic outlook on its subsequent performance.
