Friday Morning Bitcoin and Ethereum Market Analysis and Trading Suggestions
Good morning everyone! In the early hours, Bitcoin briefly surged to around 108500, experienced a short pullback, and then rebounded slightly. However, it later dropped sharply below 106500 and is currently oscillating around 105800; Ethereum rebounded above 2760 but faced resistance and fell back, breaking below the 2700 mark to a low of 2614, and is now adjusting around 2630.
Overall, the spike in the early hours clearly shows characteristics of a washout, but it also released some short-selling pressure. On the daily chart, although the price quickly stopped falling after breaking through the middle band, it did not probe further down, indicating that there is support below. The key point is that the four-hour chart has shown bottoming signals: after the price broke below the lower Bollinger Band, technical indicators began to turn upwards. Although the current rebound strength still needs to be enhanced, it may require short-term low-level oscillation to digest the remaining short-selling momentum, but this precisely provides an opportunity for bulls to build strength.
In terms of technical structure, we are more inclined to see the current adjustment as a consolidation rather than a reversal. The key support to confirm is the previous strong resistance at 106500, which was quickly broken, but the support conversion still needs to be solidified. The short-term battle around this level will determine the direction. The buying activity in the 105500-105300 area forms a strong support zone, as long as this area is not breached, the market is expected to stabilize and rebound. The rapid drop in the early hours has released a significant amount of short-selling momentum, reducing the risk of a substantial further decline.
Trading Suggestions
For Bitcoin, consider buying around 105500-106000, targeting 107500; for Ethereum, consider buying around 2650, targeting 2700.
