With the recent development of the market, BTC and ETH have reached an important testing point.
First, looking at BTC: it has currently pulled back to a low of 125,000, which is exactly at the lower edge of the previous oscillation range and also at the upper edge of the oscillation range from May to July, a typical support-resistance conversion critical point.
As long as it does not fall below 112,000, the market still has the opportunity to oscillate at high levels and even rebound again. However, it should be noted that from the daily technical perspective, a typical new high divergence has appeared, which is a clear bearish signal. If it subsequently breaks below 112,000, do not hold onto illusions, as it is likely to pull back to the 100,000-102,000 range.
In this process, if you choose to short, be sure to set a stop loss to avoid a quick recovery after the market drops, causing unnecessary losses.
Now, looking at ETH: since August, it has formed a standard 5-wave upward structure, followed by a corresponding 3-wave pullback, currently down more than 15%. This morning, it reached a low of 4060, slightly below the key support near 4090.
This is both the previous high position from April and December 2020, and it is close to Fibonacci levels, hence it has certain short-term support.
Looking down, the trading volume between 3940-4090 is increasing, which may become a new support range, making it difficult to break through in one go. However, if BTC falls below 112,000, then ETH is likely to continue downward.
Overall, the market is currently at a critical position. BTC's 112,000 and ETH's 4090 are both core points that determine the subsequent trend. If it holds, oscillation or rebound is still expected; if it breaks, then market adjustment is the main theme. There is no need for blind optimism in the market, nor excessive panic; just focus on the key points and act accordingly.
—— Follow me, don't chase the highs or panic sell, use minimal operations to grasp the maximum trend.#加密市场回调
