Binance Square Special: April 7 Market Analysis and Bottom-Fishing Strategy Guide

Release Date: April 7, 2025

I. April 7 Market Analysis

Today's cryptocurrency market continues the recent downward trend, with Bitcoin (BTC) plunging again during the early morning hours, hitting a low of $77,100, down nearly 6% from the previous day's high, currently oscillating in the $77,500-$78,500 range. Ethereum (ETH) also weakens, dipping to around $1,500, with market sentiment leaning towards panic.

Interpretation of Key Market Signals:

Technical Bearish Dominance:

Daily Level: BTC price has fallen below the lower Bollinger Band, MACD indicator continues to diverge below the zero axis, with DIF and DEA lines in a bearish arrangement, indicating strong downward momentum.

4-Hour Level: Prices are running closely below the moving average, short-term rebounds are weak, and if it cannot stabilize above the $78,800 resistance level, it may further test the $75,000 support.

Altcoins Followed by Decline: The ETH/BTC exchange rate remains low (around 0.019), major altcoins like SOL and BNB are also pulling back, with market liquidity concentrating on safe-haven assets.

Short-term Focus:

Key Support Levels: BTC $75,000, ETH $1,480, if breached may trigger accelerated decline.

Rebound Catalyst: The market fear index (Fear & Greed Index) is approaching the 'Extreme Fear' zone; oversold recovery demand may bring a short-term rebound opportunity.

II. Bottom-Fishing Strategy Sharing

Based on the current oversold market, the following three types of strategies are provided for investors with different risk preferences:

1. High Risk: Naked Buy Call Options

Logic: Directly buying slightly out-of-the-money (OTM) bullish options for BTC or ETH, betting on a market oversold rebound.

Applicable Scenario: Quick rebound phase after panic selling (e.g., after BTC stabilizes above $78,800).

Case Study: If BTC rebounds to $80,000, buying a weekly Call with a strike price of $82,000 could yield potential returns of 200%-300%, but be wary of time value erosion.

2. Medium Risk: Risk Reversal (RR) Strategy

Operation: Buy OTM Call + Sell OTM Put (e.g., buy BTC 80,000 Call + sell 75,000 Put), constructing a zero-cost bullish spread.

Advantages: Selling Put options offsets premium expenses, suitable for a sideways bottom-building market.

Notes: Margin must be reserved to handle Put exercise risks; it is recommended to choose highly liquid tokens (like BTC).

3. Low Risk: Inverse Ratio Spread Strategy

Structure: Buy 1 At-The-Money (ATM) Call + Sell 2 Out-Of-The-Money (OTM) Calls (e.g., current ETH price $1,500, buy 1,500 Call + sell 1,600 Call×2).

Yield Characteristics: Limited losses below (only loss of premium), capped gains above (up to the sold Call strike price), suitable for a mild rebound expectation.

Optimization Suggestions: Can be paired with spot positions (like BTC, ETH) for hedging, and by participating in Binance's 'Content Mining' activity to add token tags (like #BTC, #ETH) to receive trading rebates.

III. Practical Suggestions and Risk Warnings

Asset Selection: Prioritize attention on liquidity leaders like BTC and ETH, and avoid low market cap altcoins (high liquidity risk).

Position Management:

High-risk strategy allocation ≤ 10%, stop-loss set at 50% of the premium.

Medium-low risk strategies can be allocated to 20%-30%, with dynamic adjustments to the holding ratio.

Risk Hedge: If BTC falls below $75,000, it is recommended to partially transfer positions to stablecoin investments (like Binance Flexible Savings) or hedge by shorting USDⓈ-M contracts.

Interactive Benefits: Participate in Binance Square's 'Content Mining' activity, add token tags (like #BTC, #ETH) in your analysis, and receive a 5% trading rebate; high-quality content can also win BNB rewards.

Disclaimer: The above content does not constitute investment advice, the market has risks, and decisions should be made cautiously. Data source: Binance Square real-time market data, content mining rules.

Follow the author for daily strategy updates; leave a comment sharing your bottom-fishing plans for a chance to win Binance merchandise!