Bitcoin experienced a flash crash of 4400 points in the early morning, while Ethereum showed strong performance again, breaking new highs! How should we position ourselves in the market going forward?
In the early morning, the market once again played out a terrifying scene, but this time the movements of Bitcoin and Ethereum exhibited a rare extreme divergence. Bitcoin experienced a sudden flash crash, plummeting straight down from a high of 114900, dropping over 4400 points in a short time, reaching a low of 110592, setting a recent new low. The price then quickly rebounded, recovering most of the losses, and is currently consolidating around 113500 yuan. This exceptionally long lower shadow is very striking, indicating that there is strong buying support at low levels. Ethereum's performance is completely different from BTC, showing a strong consolidation pattern. Last night, it continued its upward trend, gently rising and once again breaking through previous highs, reaching a historical new high of 4955. Although it fell back to 4709 in the early morning, it did not damage the overall upward structure and quickly rebounded to around 4800, demonstrating significant resilience.
Bitcoin experienced a panic washout in the early morning, rapidly plummeting in a short time, aiming to clear leveraged long positions and trigger stop-loss orders. Ultimately, it found strong defense from bulls in the 110500-111000 area and quickly rebounded, confirming the effectiveness of that support. As long as the price holds this area, the overall oscillating upward pattern can be maintained. This flash crash also warns the market of high volatility and extreme leverage risks. If it stabilizes above 113500, it may look to test previous highs again; if it tests lower again, we need to be cautious of the 'double top' structure risk. Ethereum continues to be strong; after reaching the historical new high of 4955, the pullback to around 4700 is a healthy technical correction, beneficial for digesting profit-taking and accumulating upward momentum. Its low point of 4709 and high point of 4955 are both above the previous day, maintaining a perfect bullish trend of simultaneous upward movement of highs and lows.
Bitcoin suggestion: Consider buying around 113000, target 115000-116000
Ethereum suggestion: Consider buying around 4750-4700, target 5000
The market once again teaches us the importance of risk control through extreme volatility. BTC's flash crash is a warning, while ETH's strength is a banner. The current market is in a state of divergence and high volatility, so everyone must reduce leverage and operate with light positions. Closely follow the strong trend (Ethereum), while maintaining respect for key support (Bitcoin), in order to seize opportunities amidst chaos. #ETH创历史新高
