This morning, Bitcoin plummeted by 5,000 points, hitting a low of $110,484; Ethereum also followed suit, dropping to $4,670 before a strong rebound. This wave of market movement completed the up-and-down tug-of-war in 3 days: on the 23rd, influenced by Powell's message, the market directly pushed down the short side; on the 25th, the heat peaked and began to kill the long side, creating chaos in the market.
In fact, we are all cannon fodder in this battle for funds. In the past 24 hours, a total of 164,417 people have been liquidated, with a total liquidation amount of $811 million.
BTC
Bitcoin has rapidly dropped, with a whale dumping 24,000 BTC, which still has a value of $1.38 billion in BTC. However, there are reports that the whale simply converted BTC into ETH, with a total value of $2 billion, of which $1.3 billion has been staked.
The weekly MACD for Bitcoin has formed a death cross, suggesting that a weekly level adjustment has begun. Although there is a possibility of a false death cross, the probability is low. There may be a short-term rebound, but it's more likely that this is the end of the trend. This week is crucial; if it cannot break through $116,000, the bull market may end and the bear market will begin.
Currently, BTC has confirmed an M-top divergence, and short selling has intensified, testing the lower support. If it breaks below $110,837, it will quickly seek a bottom, waiting for a bottom formation for recovery. Resistance levels are $112,857 and $113,655. Support levels are $110,837 and $108,000. If the daily closing does not break through $118,000, the trend will still be downward, targeting the $108,000 support.
ETH
ETH has shown significant capital support in the past couple of days, but alongside BTC weakening, Ethereum touched a previous high and then plummeted. A double top can lead to a significant correction. Ethereum's weekly MACD is overbought, and the daily chart shows high volume with a doji, indicating risk.
Short-term support is at $4,600; it's uncertain if it can hold. Stronger support is around $4,400, suitable for trying a rebound. Resistance levels are $4,733 and $4,854. Support levels are $4,539 and $4,433.
This afternoon, I felt that ETH would dip down, reminding fans to short. However, the recent rapid drop from a high position and increased volume indicates that risks have gradually accumulated. Therefore, I recommend holding spot positions and using phased profit-taking or short hedging to reduce potential pullback risks.
However, recently whales have started converting BTC to ETH, indicating that whales are more optimistic about Ethereum's trend. Funds often flow into Ethereum, driving its breakout. Ethereum may still have the potential to reach the $5,000 or even $5,400 range.
SOL
The SOL/BTC trading pair has broken through the resistance level, indicating that SOL has entered a strong phase. SOL continues to attempt breakthroughs, showing significant capital inflow; pay attention to the upcoming supplementary rally.
Jump and Multicoin plan to raise $1 billion to purchase SOL, replicating the Ethereum model and investing in the SOL ecosystem. This wave leads SOL, and other mainstream coins may follow.
Is the bull market still ongoing?
When the big bulls drop suddenly, I remember that in 21 and 17, after continuous large gains, there were significant single-day waterfall drops. However, there hasn't been a decent correction in the second half of this year; the accumulation of risk is intensifying. After establishing another bottom, I will continue to buy the dip.
We are still in the process of a bull market; the entire financial market remains abundant in liquidity. Even the A-shares have reached new highs, and crypto has not yet reached the top stage.
Altcoin
WLFI dropped to a low of 0.2000; this afternoon I publicly recommended this as a stop-loss level to aim for a rebound, resulting in a profit of 533.61%. Even in a crashing market, I can help everyone make money.
Historical experience shows that after Bitcoin and Ethereum break through previous highs, the altcoin bull market usually follows. In the later stages of the bull market, BTC's market share decreases, and funds flow into quality coins that haven't risen much, such as SOL, PEPE, ADA, and SUI, which offer better value.
After mainstream coins rally, more quality altcoins are expected to follow suit. A rate cut in September has become a certainty; if there are 2-3 rate cuts within the year, market funds and liquidity will be abundant. Recently, BTC funds have flowed into Ethereum, and this capital outflow is expected to extend to other quality coins, making local altcoin rallies likely.
The cryptocurrency market is not short of wealth-making opportunities; the key is to understand the trend, choose the right coins, dare to invest heavily, and stick to holding them. This crash could be an excellent entry opportunity; the crypto space isn't about earning a salary but chasing wealth. The trend is clear; if you don't seize it, you might have to wait another two years!
