Market Analysis for October 20:
On Tuesday night, Bitcoin reopened its downward channel, experiencing a slight drop; Ethereum retreated over 200 points from its peak, and Bitcoin pulled back nearly 2000 points in the short term, falling from a high of 115,800 to around 113,500. Unexpectedly, the decline has not yet stopped, with a cumulative pullback of 10,000 points from the previous high, and the overall trend has exceeded expectations.
From a larger trend perspective, the market is still in the continuation structure of a second wave adjustment. The weekly level continues to face pressure and retreat. Compared to the previous rise, the current pullback is still within a healthy range.
Combined with the "Evening Star" pattern, it is expected that there is still downward space in the future market. Although there have been multiple tests of support below 113,000 in the short term, it should be noted that repeated testing at the same position will weaken its effectiveness as support. The long-term bullish logic remains unchanged; the current situation is merely an extended adjustment period with increased volatility. A small-scale rebound signal has emerged, and there is still room for recovery from the low. Although the moving average system appears somewhat disorganized, the overall structure still tends to rebound from the bottom.
Wednesday early morning operation suggestions:
Focus on buying Bitcoin in the range of 113,400-113,000, with a target of 115,000;
Focus on buying Ethereum in the range of 4160-4140, with a target above 4260.
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