A delicate balance in the market on Monday
The market on Monday showed a brief stabilization, which was mainly affected by the news. There are two major driving forces behind the rebound near 95,000.
First of all, MicroStrategy’s announcement became a “reassurance” for the market. Its plan to continue increasing its holdings this week injected confidence into investors and boosted market sentiment. Secondly, the stable performance of the U.S. stock market also contributed greatly. It was not disturbed by policy fluctuations and maintained its original pace.
The current market trend shows two notable characteristics. On the one hand, the demand for price repair appears particularly strong. Even if the market has seen a small rise, brothers still need to remain vigilant to prevent a sudden decline. From a technical perspective, the current market is facing both suppression from the moving average system and concerns about insufficient upward momentum. Therefore, this slow rise and fast fall fluctuation characteristic may continue for some time.
On the other hand, the key support levels are gradually moving down. If the 4-hour descending wedge fails to break through in the chart and returns to a certain range again, the market may touch the 91,000 area again and may form a stage bottom here.
Facing this week's operations, there are three key points to keep in mind:
1. Avoid blindly chasing rising prices due to emotion. Stop loss protection must be set for all long orders to reduce potential losses.
2. During the European and American trading hours, if the market falls sharply, do not blindly buy at the bottom. Stay calm and observe market trends.
3. Always be alert to the deep correction that may occur in the market at any time and be prepared to deal with it.
As for the operation strategy, in the short term, we should pay attention to the support situation in the 95500-95800 area, while the upper pressure is mainly concentrated around 99000. When the market rebounds above 99,000, you can consider gradually deploying a short-selling strategy. At the same time, the view on Ethereum remains bearish. The downward trend has not yet ended, so do not enter the market too early to catch the rebound.
In general, the market trend is complex and changeable, so you need to keep a clear head
