25/08/07 BTC broke through 116,000, Ethereum returned to 3,800, what should the market do next?
Bitcoin broke through 116,000 at 6 PM, reaching a high of 116,800. In the short term, it tested support on a pullback, so it is very crucial that the next pullback must hold above 116,000 for this breakout to be valid. The previous daily support box of 114,700 and 115,700 must be held above for bulls to continue. The harmonic pattern mentioned yesterday at 0.886 points to 118,000, and it is still within the descending channel for now.
Ethereum broke through the descending channel; the current price is 3,846, back to the previous high. The ETH/BTC exchange rate reached a new high of 0.3312. Since the reminder on August 3rd, it has increased by over 11%.
Bitcoin
The daily MACD histogram is continuously shortening, and the fast and slow lines have not yet crossed. This change has been anticipated for a long time, waiting to see when it can cross the zero axis and spark a new round of market activity? The KDJ golden cross is upward, breaking the triangular pattern of 116,000 in the afternoon.
For now, it has returned above the support box of 114,700 and 115,700, and is still within the flag channel. A few days ago, it was mentioned that the second scenario with a harmonic pattern points to 118,000. Therefore, we still need to pay attention to not fall back below 116,000 to maintain the low long strategy.
Support: 115,000 to 116,000
Resistance: 118,000—121,000
Ethereum
Ethereum is performing relatively strongly; the 4-hour descending channel has been broken, reaching near previous highs. The daily KDJ has crossed, and the MACD histogram is shortening, with signs of crossing in the fast and slow lines. The ETH/BTC exchange rate has risen to a maximum of 0.3312.
The daily line broke through the 20-day moving average, and the pullback still suggests a low long strategy; it may go on to test the resistance at 4,000 to 4,100. Bitcoin is just at the 20-day moving average under pressure; if it can effectively hold above the 20-day moving average, there is a high probability of continuing to rise, with a strategy to buy on dips.
Support: 3,550—3,750
Resistance: 3,940—4,100
