😅About the significant increase in BTC, ETH, and SOL last night at 22:15. I went to bed too early yesterday and I'm not sure if anyone got stuck in the market.

Regarding this issue, I will analyze it from several aspects. This is not an after-the-fact analysis; it's to set stop-losses for the next time such a situation arises, or to keep an eye on the market all night and avoid going to bed too early. 😅

Below, I will analyze from two aspects: data and information gathered from across the web. 💸

1⃣ Santiment data shows that retail sentiment has reached an extremely pessimistic area, which historically often corresponds to the starting point of a market rebound. It also points out that there is a significant area of short liquidation around $117,000 (BTC) and $4,300-$4,360 (ETH). Additionally, it mentions that the ADX indicator for ETH has reached 42, indicating a strong trend.

2⃣ There are several important supports for this wave of increase: First, the demand for a rebound from overselling. The RSI for ETH once fell to an extreme oversold area of 28, and SOL is also approaching a key support level of $175, indicating a technical rebound demand. Second, there are signals of divergence in indicators. It was mentioned that ETH shows signs of MACD divergence. Third, key support levels are holding firm. BTC has strong support at $112,000, ETH at $4,100, and SOL at $175.

3⃣ On the funding side, first, the high proportion of shorts has triggered a short squeeze. The short ratio for ETH reached 65%, and for SOL, it was 62%. Once it breaks through key resistance, it could easily trigger a short squeeze. Secondly, institutions are accumulating at low levels. Institutions like BitMine and Sharplink have been buying ETH significantly near $4,100. Finally, changes in ETF fund flows. Although there was a large outflow from the ETH ETF a few days ago, some funds may have shifted to accumulate on dips.

4⃣ Most importantly, changes in the Federal Reserve's policy expectations. Analysts like Tom Lee believe that although Powell may maintain a hawkish tone, the market has already priced in this expectation, and his speech may be interpreted as "dovish." Meanwhile, the crypto market still maintains a high probability of an interest rate cut in September at 85%.