Currently, both Bitcoin and ETH are progressing towards the first target mentioned yesterday, $112,000 and $4,050;

From a technical perspective, Bitcoin is still in a bearish pattern, with the daily chart forming a rising wedge breakdown and a double top pattern, targeting below $100,000.

On-chain data shows that whales are selling: the number of whale addresses holding over 10,000 BTC has fallen to a yearly low, indicating that large holders are taking profits.

At the same time, institutions are accumulating: on-chain data shows that whales (10-10K BTC addresses) have been buying at low prices, accumulating 20,061 BTC over the past 5 days.

Exchange net outflows have accelerated (the 30-day average has increased from -1.7K BTC/day to -3.4K BTC/day), indicating that long-term investors are buying the dip.

Overall, the foundation for a bull market remains, with on-chain indicators like the MVRV Z-Score showing that the bull market cycle has not ended, and global M2 money supply expansion supports a long-term bullish outlook;

In the short term, this pullback may still have another sharp drop, currently, it seems that the first target for BTC and ETH may not hold, let’s see if the second target can stabilize: $105,800 and $3,830;

At 2:00 AM on Thursday, the Federal Reserve FOMC monetary policy meeting minutes will be released; and at 10:00 PM on Friday, Federal Reserve Chairman Powell will speak, which may be the moment for a sharp drop; of course, if we can get through it smoothly, then a rebound can be expected.