The recent market is really boring. Bitcoin has been fluctuating in a narrow range at the daily level, and most of the altcoins are also in a negative state. The whole market gives people a feeling of lack of vitality. Last night, the news that Binance was sued by the CFTC caused the market to fall below $27,000 for a short time. Then, due to CZ's Twitter message, the market rebounded briefly. However, judging from the current market, the rebound is still very weak.
Let's review the rebound of Bitcoin from 20,000 to 28,000. From the daily chart, this wave of market is a V-shaped reversal. The reason is that Powell's hawkish remarks have plunged the global financial market into a liquidity crisis. Several large banks have gone bankrupt one after another. Some safe-haven funds have poured into BTC, making Bitcoin a safe-haven asset for a short time. It has risen rapidly for several consecutive nights, breaking through multiple pressure levels and rising directly by 40%. However, during this period, Ethereum only followed the rise in the first few days, and most of the other cottages also followed the rise in the early stage, and were in a state of weak rise in the future. Therefore, this wave of market can be said to be just a carnival of Bitcoin. Many cottages may have kept up with the rise of Bitcoin from the bottom, but when Bitcoin fell back a little, the cottages plummeted, and the market did not continue. In other words, there are very few opportunities for spot trading in the market, and the operation difficulty is also extremely high, so the heroes also choose to wait and see.
Similar to the situation where Bitcoin rose independently, while most of the altcoins followed the decline but not the rise, it has also occurred many times in the previous bear market cycles. It was caused by multiple reasons such as insufficient funds in the overall market, unsatisfactory environment, and few things that can be narrated in the market. In other words, the current market is just rebounding and does not meet the conditions of a bull market. This is also the point of view that the hero has mentioned many times before. From a perceptual point of view, the hero certainly hopes that the market will get better. After Bitcoin breaks through the annual line and stabilizes, Ethereum altcoins can make up for the rise, but the reality is contrary to our wishes. We must look at the market rationally and see the potential risks in the market. As the saying goes, if you keep the green mountains, you will not be afraid of running out of firewood. In this situation, the hero is unwilling to take this risk. The opportunity is in the market after the big drop, not to bet on the altcoins to make up for the rise after Bitcoin soars.
Bitcoin fluctuates back and forth at the 4-hour level. Since the first time it fell below the 27,000 rebound barrier, the rebound strength is gradually weakening, and the defense strength of 27,000 is getting smaller and smaller. The view that a long-term sideways trend will inevitably lead to a fall is slowly being verified. In terms of technical indicators, the daily MACD is about to cross, and Bitcoin's deviation rate is also relatively high. Both the daily MA5 and MA10 have fallen below, and there is a need to step back on the daily MA30. The current position of the daily MA30 is around 24,600, but this position is gradually moving up, and 24,000~25,000 is the intensive trading area in the early stage. Therefore, the first target position for the retracement is around 25,000. Support level: 26,500 Pressure level: 27,500
The trend of Ethereum and Bitcoin is slightly different. In this wave of market, Ethereum's rise is weaker than Bitcoin, and its decline is gradually smaller than Bitcoin. It is more like an independent narrow range of fluctuations. Now it is also a dead cross of the daily MACD. In the short term, the volatile market will continue for a while. Support level: 1660 Resistance level: 1800
