This morning, Bitcoin plummeted by 5,000 points, dropping to a low of 110,484 dollars, and Ethereum was dragged down by Bitcoin, hitting a low of 4,670 before rebounding strongly. The market completed a struggle in just three days; on the 23rd, the market reacted directly to Powell's influence, crashing shorts, and on the 25th, market enthusiasm peaked before starting to push down. This back-and-forth directly tore through the market, and we are all cannon fodder here. In the last 24 hours, a total of 147,602 people were liquidated, with a total liquidation amount of $717 million.
BTC
Bitcoin has rapidly dropped, with a whale selling 24,000 BTC, still holding BTC worth 1.38 billion on its account. However, there are reports that the whale has only converted BTC into ETH, with a total value of 2 billion dollars, of which 1.3 billion is staked.
The MACD on the weekly level for Bitcoin has formed a death cross, indicating that a round of weekly adjustments has begun. Although the possibility of a false death cross cannot be ruled out, the probability is low. Even if a rebound occurs in the short term, it is more likely to be at the end of the trend. This week is crucial. If it cannot rise above 116,000 again, then this bull market will end, and a bear market will begin.
Currently, BTC has confirmed a top divergence with an M-head pattern, short sellers are increasing their selling intensity, testing the pin support. Below is the liquidation point for the majority of longs; if it falls below 110,837 dollars, it will quickly probe lower and weaken, waiting for a bottom to be built.
Resistance levels: 112,857, 113,655 Support levels: 110,837, 118,564
As long as the daily closing price does not reclaim the pressure level of 118,000 dollars, the overall trend remains downward, with the support target unchanged at 108,000 dollars.
ETH
ETH has shown significant capital support in the past couple of days, but alongside the weakening of BTC, Ethereum has touched its previous high and then dropped sharply; a double top can have a significant retracement.
ETH has shown an overbought MACD pattern on the weekly scale, moving away from the zero axis, with high volume on the daily chart and a doji pattern, indicating potential risk. The short-term small support is at 4,600, unsure if it can hold, while stronger support is in the dense trading area around 4,400, where a rebound can be attempted with a decent chance of success.
Resistance levels: 4,733, 4,854 Support levels: 4,539, 4,433
In the afternoon, Sweet Dream felt that ETH would drop to test the pin, reminding fans to open shorts. However, the recent rapid decline from high positions with increased volume indicates that risk has been gradually accumulating. Therefore, it is advised to hold spot positions while implementing phased profit-taking or hedging with short positions to reduce potential drawdown risks.
However, recently, whales have started converting BTC into ETH, indicating that they are more optimistic about Ethereum's future performance. Funds often flow into Ethereum, driving it to break through. Ethereum may still attempt to challenge the range of 5,000 dollars or even 5,400 dollars.
SOL
The SOL/BTC trading pair has already broken through the pressure level, indicating that SOL is also entering a strong performance phase. SOL is really strong and has been trying to break through, and it is clear that large funds are flowing into SOL, so pay close attention to the upcoming rebound market.
Jump and Multicoin are seeking to raise $1 billion to purchase SOL, financing to buy SOL, and linking to the SOL ecosystem. The Ethereum model is being rapidly replicated to other mainstream coins. This wave is SOL, and other mainstream coins will quickly follow suit.
Is the bull market still on?
A sharp drop in a bull market often happens; Sweet Dream remembers that after consecutive surges of 21 and 17, there have been single-day waterfall crashes, and this year in the second half has not seen a decent correction. Risk accumulation is intensifying. After building a bottom again, Sweet Dream will continue to buy in. We are still in the process of a bull market; the entire financial market still has ample liquidity, even A-shares have reached new highs, and crypto has not yet reached the top stage.
Altcoin
WLFI dropped to 0.2000; in the afternoon, Sweet Dream publicly recommended using this as a stop-loss point to bet on a rebound, achieving a profit of 533.61%. Even in a crashing market, Sweet Dream can help everyone make money.
Based on past experience, Bitcoin and Ethereum have broken previous highs, leading to the arrival of an altcoin bull market. In the later stages of the bull market, BTC's market share will only decrease, with funds flowing toward quality coins that have not yet seen significant gains. The most cost-effective options are SOL, PEPE, ADA, and SUI. After mainstream gains, more quality altcoins should continue to take off.
Currently, the interest rate cut in September is a done deal. If there are 2-3 opportunities for rate cuts this year, do you think the market still lacks funds? Is there still a lack of liquidity? Recently, a lot of funds have shifted from Bitcoin to Ethereum, and this capital outflow will gradually expand to other quality coins. A local altcoin surge is still worth looking forward to.
The crypto space truly does not lack wealth creation myths; what is lacking is your ability to understand the trends, select the right coins, and have the faith to hold onto them. This recent drop might be an excellent opportunity for us to enter.
