Black Monday! Bitcoin and Ethereum plummeted this morning, and there has been no stop to the decline yet! Altcoins have suffered severe bloodshed! Tienmeng mentioned in last week's article that Bitcoin and Ethereum would face another drop! This week, it came true. Fans who read Tienmeng's article last week should not have been stuck in a bad position. This morning, I tested at 1,152,000; seeing it couldn't rise, I exited.
BTC
The weekly level of BTC shows a clear top structure, including long upper shadows and engulfing patterns, all indicating a bearish bias. If this week continues to form a dead cross and confirms a top divergence, Bitcoin may drop below 110,000.
Currently, the weekly closing shows a weak potential high-level small range consolidation. If it breaks down from the small range, we can expect to enter a structural pullback at the weekly level. Currently, there is a continuous bearish breakthrough at the hourly level, and without a bullish structure, do not go long. The key support area to watch during the 4-hour pullback is 108.8k-120K.
From Bitcoin’s liquidation map, the long and short chips are mainly concentrated in the 110,000-120,000 range. If the dogs can push the price down to around 112,000, they will have basically completed a wave of cleaning for the bulls. Personally, I want to try to pick up some near 112,000 or slightly below that position, or look for opportunities to go long.
ETH
Ethereum has broken below the Vegas channel and ascending structure on both daily and 4-hour levels. The continuous bearish breakthrough mainly aims to clear leverage and kill floating funds. With the goal mostly achieved, it indicates that the decline is nearing its end. The bearish target is at 4200—a potential support area that has been touched multiple times before. If it rebounds but meets resistance and goes down, the second bearish target is at 3939.
Can we still buy the dip?
Of course, a decline is not sudden; key positions will at least see a rebound. The bet is that the subsequent market has not ended. Every wave of decline is an opportunity. (If the points change, Tienmeng will update in time)
ETH $3950 —— $4200: The resistance area that has been tested repeatedly has now turned into support. I will place orders in this range.
BTC $110000 —— $112000: Falling to the suitable range is also a good signal.
Trump is buying the dip!
Trump just bought $10 million worth of Bitcoin and $10 million worth of Ethereum. You panic and sell, while Trump greedily buys the dip. Are you still going to panic and leave? Why not look for an opportunity to buy low?
Shanzhai
Bitcoin determines the market, Ethereum determines the altcoins. If both decline, the drop in altcoins will be even more severe. However, at this stage, do not let temporary price adjustments affect market confidence. This pullback is reasonable and not malicious dumping. The pullback is an opportunity for strong institutions to enter the altcoin market and also a chance to enter before interest rate cuts.
LINK: Today influenced by the overall market, although it has dropped significantly, from the daily level, it hasn't even dropped to half the position of the large bullish candle. It just filled the previous gap, and the overall trend is still within the rising channel. When the market warms up, it is expected to rebound first and then challenge the previous high resistance at 27.
Dogecoin: The current daily pattern is close to an engulfing pattern. If it drops to $0.2, it will become an important opportunity for long-term positioning.
SOL: Set buy orders at 178.7 and 175.2 and wait for opportunities. If given the chance, act; if not, just watch. Defend the previous low of 173.4.
OKB: If you are optimistic about xlayer but afraid of high risk, then buy OKB. It's a larger meme with a market cap of just over 2 billion, offering high cost-effectiveness and stability. OKB is severely undervalued; its current market cap does not match its worth.
In a declining market, only OKB remains strong. Enter at the 100 position; yesterday it peaked at 130. Choosing incorrectly means efforts are wasted. Tienmeng has accurately grasped the situation; if you want the password, private message me!
This week's turning point
This Friday, Fed's Powell will speak at the global central banks meeting, and Wall Street predicts that the rate cut process will be officially confirmed. The last time the Fed cut rates was at the beginning of 2020, when they distributed money from helicopters. Both US stocks and Bitcoin commodities saw a full recovery, and only in 2022 did they tighten the faucet.
Interest rate hikes and cuts are means; what truly determines the release of liquidity is whether the balance sheet is expanded or contracted. The actual impact of raising or lowering interest rates may bring counterproductive effects; rather, the expectation of rate cuts will truly influence the trend. For example, from the beginning of the year to now, every time it reaches a turning point in the market, there tends to be an expectation of rate cuts. Buy the expectation, sell the reality. Whether it’s expectation or reality, it means that Friday will be a watershed moment, so keep a close watch on Powell's related dynamics regarding rate cuts.
We enter the crypto world to seize trends; we are not here to earn a salary but to make money. The current trend is right in front of you. If you don’t seize it, you might have to wait another 2 years!
