Last night, the CPI unexpectedly turned favorable, and Trump urged Powell to cut rates immediately! The US stock market, cryptocurrency circles, and the A-shares have been hitting new highs recently, with Bitcoin surging to 120,000 and Ethereum skyrocketing to 4,600! In the last 24 hours, a total of 117,976 people globally have been liquidated, with a total liquidation amount of $517 million.
Bitcoin
BTC is currently fluctuating around $119,000. After the breakout of the box in the hourly chart, it failed to maintain the uptrend, and the current price is retracing to the upper boundary of the box. If the price does not fall back into the box, Bitcoin will continue to fluctuate around $119,000.
If it falls back into the range, the lower boundary of the flag must be broken, which means Bitcoin may start to show weakness. The range of $119,191 to $118,179 may be difficult to support and is likely to be broken. Once it falls below $118,179, the downtrend for Bitcoin will officially begin.
The short-term support level is at $118,000. If this level holds, Bitcoin may continue to rise and test resistance above $122,000.
The second support level is in the range of $116,000 to $117,000. This level is very critical and offers good value, so I will choose to enter long positions in this range.
Ethereum
From the weekly chart perspective, ETH has broken through all moving average pressures with consecutive strong bullish candles, showing a clear bullish arrangement and successfully unlocking most of the trapped positions from the last bull market. The current price is only about 300 points away from the historical high, with about 6% potential. Clearly, this trend is aimed at the historical high, and ETH is expected to break through $4,900 and continue setting records. Therefore, spot holders can continue to hold for further increases.
Currently, Ethereum is retracing to near the lower Bollinger Band on the 15-minute chart, around $4,562, with effective support, and the pullback is nearing its end. If it breaks above $4,588, it is recommended to re-enter. The target is set toward $5,000. In the short term, the range of $4,666 to $4,720 may experience some consolidation. Although there are currently no clear topping signals for Ethereum, it is expected that after this wave of increase, a correction of more than 20% will occur, possibly exceeding $1,000.
Altcoins
Ethereum continues to set new highs, and the market's expectations for a rate cut in September are now 100% certain, with further speculation likely to continue. In this context, the upward momentum for altcoins is also about to arrive. As Ethereum breaks through and stabilizes at the current highs, liquidity will gradually increase, and the nature of capital seeking profits will lead to rotation.
In the case of large capital rotation, there aren't many high-quality options available in the market. Projects like XRP, DOGE, ADA, LINK, SHIB, UNI, and PEPE will adjust prices based on safety and current market narratives. Those temporarily undervalued coins will quickly attract capital inflow, driving a wave of increase.
The market has been in a correction phase recently, and blindly bullish investors may have already started picking up bargains. Bold investors might have made considerable profits during this process!
ETHFI: With Ethereum's continued surge, capital is also focusing on Ethereum-related tokens, such as ena and uni, which have received some attention. ETHFI has formed a bull flag, and we are just waiting for a breakout. Once it breaks the flag, the target can be around $3, so it's recommended to keep an eye on it and follow up after the breakout!
GMX: GMX has stabilized horizontally, with previous guidance suggesting a rise of around twenty to thirty points. Enter at 17.5 and place the stop loss at 15.5! For profit-taking, first look at 22, then at 26!
LINK: In the past week, especially after announcing the start of income buybacks, LINK's gains have stabilized and outperformed ETH. As a monopolistic player in the industry infrastructure oracle track, it has stable income and is one of the beneficiaries of the RWA and DeFi leap. LINK should be one of the fundamentally strongest assets in this trend cycle. The performance in a bull market means that good projects should all reach ATH, and LINK's previous high was 52; if it doubles, it will be perfect. LFG!
Share with everyone a profit-taking method that has worked for me repeatedly, which does not require predicting the top, yet still yields great results.
In a volatile market: take profits at 30%, 50%, or even liquidate completely, such as the trading logic for SOL.
In a trending market: take partial profits at 3-5%, while raising the stop loss to the EMA moving average to protect profits, as in the trading logic for AAVE.
From volatility to trend: take 30% profits in the volatile range, wait for a breakout of the price structure, and then re-enter the positions that were liquidated, continuing to execute according to the trending market, such as the trading logic for ETH Ethereum.
My current spot positions are strictly following this profit-taking strategy. It doesn't always mean catching the top, but the holding experience is excellent, with no anxiety of 'not being able to hold on'.