In the market action earlier today, the cryptocurrency market experienced another roller coaster. Bitcoin (BTC) once fell below 111,000 USD, with a daily drop of 3.11%, and the current price hovers around 112,700 USD.

Meanwhile, Ethereum (ETH) has reached a new high against the trend, peaking at 4,955 USD, but signs of a pullback have emerged after the surge, showing a pattern of divergence. Investors need to pay attention to key price levels and deploy cautiously.

Bitcoin (BTC) trend analysis

Bitcoin daily chart

Bitcoin weekly chart

K-line structure

The weekly chart has formed a typical 'evening star', and the daily double top pattern is confirmed, with neckline support at 110,000 USD.

Resistance and support

  • On August 22, stimulated by news, BTC rebounded to 117,000 USD, which corresponds to the previous rising trend line, and has now turned into a resistance level. After failing to break through effectively, the price has fallen back again. Currently, the **EMA120 daily moving average (110,000 USD)** is the primary support; while the 112,000 USD level is the trend line and a dividing line for bulls and bears.

Range performance

  • From the 4-hour level, market activity has significantly decreased, with BTC entering a consolidation phase, price restricted in a narrow range of 112,000 – 114,000 USD.

  • Operational reference

    • Strategy: Focus on 'short high, long low, prioritize low longs'

    • Reference range: 110,000 – 115,000 USD

    • Risk control: Stop loss at 1,000 points, target at 2,000 – 3,000 points

    • Suggestion: For spot, gradually buy 30% of positions at 110,000 USD; if it retraces to 112,000–112,300 USD, long positions can be deployed, stop loss at 111,500 USD, target at 113,500–114,000 USD. If it breaks above 113,500 USD, then try short positions in the range of 113,800–114,000 USD.

Ethereum (ETH) technical analysis

  • Trend characteristics

    ETH reached a historic high of 4,955 USD this morning, but the MACD indicator shows divergence, and momentum bars are weakening, increasing short-term pullback pressure. The current price has fallen back to around 4,710 USD and remains in a high-level fluctuation.

  • Key support

    First support: 4,580 USD

    Strong support: 4,350 USD

    On the 4-hour chart, ETH has broken through the descending channel and has re-established itself on the rising trend line from early August. If it falls below 4,225 USD, it will damage the bullish structure and show signs of multiple tops.

  • Operational ideas

    • Contracts: Light short positions around 4,740 USD, stop loss at 4,800 USD, target at 4,600 USD.

    • Spot: Buy in batches at 4,500 – 4,350 – 4,050 USD, it is difficult to accurately catch the bottom, so range layout is more stable.

Altcoin allocation recommendations

In an environment of increased volatility for mainstream coins, altcoins still have certain opportunities, but it is essential to adhere to the principle of 'first follow the leaders, then follow; keep positions lighter'.

  • Key direction:

    • SOL ecosystem: JTO, JUP

    • AI calculations: FET, RNDR

    • Ethereum ecosystem: L2 (OP, ARB), established DeFi (UNI)

  • Meme sector:

    • DOGE support 0.21–0.20 USD has historically shown strong resistance.

    • The decline of PEPE has weakened this round, indicating limited selling pressure and potential for recovery.

Risk warning and position management

  1. Trading volume continues to shrink → Market sentiment is highly cautious.

  2. U.S. stock market trends transmit risks → May bring additional volatility.

  3. Key support risk → If BTC falls below 112,000 USD, it may trigger a new round of declines.

Position and risk control recommendations:

  • Single position not exceeding 5% of total funds;

  • Use limit orders to avoid slippage;

  • Keep a close eye on global macroeconomic events and flexibly adjust strategies.

The next few days are a critical window for the market.

  • BTC: Whether it can hold the 110,000 USD support will determine the short-term direction;

  • ETH: Whether it can stabilize at the 4,500 USD mark is related to the continuation of the bullish trend.

No matter how the market evolves, position control and risk management are always the foundation for crypto traders.