Latest Bitcoin (BTC) market analysis
Last night, the CPI data released was lower than market expectations, and this good news led to a rebound in Bitcoin prices. As we expected, the data was slightly lower than expected, which triggered a rise in prices after hitting the lower support, which just met our expected position for long orders. In the middle of the night, although the Federal Reserve kept interest rates unchanged, Powell's speech was slightly hawkish, causing Bitcoin prices to slowly decline again, forming a pattern of long and short kills.
Judging from the trend of the four-hour chart, the price is currently in the lower part of the trading range, which is a relatively awkward position. In terms of trading strategy, we still recommend operating in the box trading mode. If the price can rebound to the middle axis of the box, you can consider entering a short position; or, if the price oscillates at the bottom of the box without breaking directly, then it will be a reasonable strategy to choose to enter the market and do more after forming a stable oscillation.
Latest Ethereum (ETH) market analysis
Looking back at yesterday's market trend, Ethereum formed a positive line at the close, but the long upper shadow line indicated that there was a large selling pressure above. The positive news of CPI data released last night brought confidence to the bulls, pushing the price to above $3,600. However, the bears were equally strong, and the price was pulled back below $3,600 at night. Despite this, the bulls maintained the support level of $3,500 at night. The current daily chart shows that the competition between the bulls and the bears is still fierce. Yesterday's long shadow line also suggests that the market direction may be unclear this morning, and the opening price is low.
However, it is important to note that as long as the price does not fall below the 120-day moving average (MA120), the bull trend remains valid. Observing on the four-hour chart, after the 20-day moving average (MA20) crossed the 120-day moving average (MA120), it seems to be approaching the 250-day moving average (MA250). Although the price is still below the 20-day moving average (MA20), it may provide an opportunity to short on rallies in the afternoon. From the one-hour chart, the 20-day and 120-day moving averages tend to approach, but the price is still below the two moving averages, and the market begins to enter a state of shock.
CRV plunge analysis: lending liquidation risks and investment strategies
Recently, the price of CRV has once again attracted the attention of investors in the cryptocurrency market. The reason for this situation is that its founder over-leveraged and used collateral tokens to borrow money to buy luxury homes. Eventually, these tokens were at risk of liquidation, causing the price of CRV to fall by 35% overnight. This personal decision-making error not only affected his personal financial situation, but also had a negative impact on the entire decentralized finance (DeFi) ecosystem and stablecoin transactions.
Loan liquidation can be compared to pledging a $100 Rolex watch to a pawn shop. When the market value of the watch drops to $80, the pawn shop will sell the watch to recover the loan, and you don’t need to repay the loan but lose the watch. The situation of CRV is similar, except that the collateralized assets are digital tokens.
Although the direct cause of the plunge was the personal behavior of the founder, as one of the key infrastructures of the ETH ecosystem, the CRV project itself still has potential value. Its market value is $300 million, which is not an unattainable height. For investors who are considering bottom fishing, although the current risk of CRV seems high, you can consider entering with a light position at around $0.23. If the price drops by 5%, stop-loss measures should be implemented immediately to protect the safety of investment.
