ETH plunges over 10%, BTC drops below $104,000, the time to buy the dip has arrived

Recently, BTC and ETH experienced a sharp downturn, with BTC briefly falling below the $104,000 mark and ETH's daily drop exceeding 10%, attracting significant attention. After this decline, where will the market head next?

This pullback is interpreted by the market as a dual result of profit-taking and leverage liquidation.

I believe that if BTC can hold the support level of $105,800, it may once again challenge the $110,000 high in the short term.

Meanwhile, the deep washout of ETH is nearing its end, and seasoned investors have begun to position themselves to build momentum for the second half of the year.

1. Analyzing the Reasons for the Market Crash

Leverage squeeze triggers a chain reaction

Derivatives data shows that a large number of long leverage positions accumulated around $105,000 for BTC, while the staking lending rate for ETH has risen concurrently. As prices fell, over $580 million in long contracts were forcibly liquidated, intensifying short-term selling pressure.

Macroeconomic sentiment disturbances

The latest minutes from the Federal Reserve's meeting released “hawkish” signals, causing the dollar index to rebound and suppress risk assets, with some funds withdrawing from the crypto market in search of safe havens.

Demand for technical adjustments

BTC had previously accumulated a rise of over 25% in the last two months, and ETH failed to effectively break through the $3,000 resistance level, necessitating a market correction to repair overbought indicators.

2. Key Support Levels and Future Market Outlook

BTC: $105,800 is the dividing line between bulls and bears

If today's close can hold above $105,800, the short-term upward trend will continue, and the target of $110,000 may be achieved within 48 hours.

If it falls below $104,350, it may test $102,000 (20-day moving average), but long-term holders have not shown signs of weakening, and a significant drop is viewed as a “buying opportunity.”

ETH: Washout nearing its end, institutions quietly accumulating

The current price has retested the key support area of $2,400, and on-chain data shows that whale addresses have increased their holdings by over 400,000 ETH in the past 24 hours.

In the derivatives market, the funding rate for ETH perpetual contracts has turned negative, and excessive concentration of shorts may trigger a short squeeze. From the end of June to July, the outlook is bullish, targeting $3,300-$3,700, with a potential to break new highs.

How to seize this opportunity?

Every dip in the crypto market is for jumping higher. When retail investors panic due to the steep decline, seasoned investors are quietly converting USDT into chips. History does not simply repeat itself, but it always carries the same rhyme — this July, ETH may prove this point once again.