Today's Market Analysis
The recent decline, $BTC , is actually more driven by $ETH . The market's funds are clearly leaning towards ETH, with activity almost entirely concentrated there. Bitcoin has support around 112000, but the rebound strength may be limited, and the focus for short-term bottom fishing may not necessarily be on it.
The current trend of $ETH resembles a continuous decline, and the reason is simple: the previous rise was too large, leading to a buildup of cash-out pressure. Once funds are realized, it can easily trigger a chain reaction. So far, the drop from the peak has exceeded 10%. Although the decline rhythm is not impressive, there will still be some recovery along the way. The 4300 area is critical; it was not maintained yesterday, and the next step is to watch for support around 4100. The impact on spot trading is not significant, but there will be considerable pressure for contracts.
In terms of altcoins, there is almost a comprehensive decline. However, compared to the past, the situation is somewhat different. In previous markets, this drop would be enough to cause many small coins to crash, but the current situation is not that dire, indicating that leveraged funds are not prevalent in altcoins; instead, ETH has absorbed most of the liquidity. Therefore, considering bottom fishing in the short term should prioritize mainstream coins rather than recklessly jumping into small coins; following the flow of funds is a more stable approach.
