BTC plummeted last night. After falling for 9 consecutive days, most of the altcoins have shrunk severely.
This week's CPI data, unemployment benefits and other data are all positive, but BTC fell instead of rising.
In terms of ETFs, there were net outflows on 4 days out of 5 days.
What do you think of the current market situation and where is the turning point?
Market Analysis
The core of BTC's decline was the Mentougou incident three months later.
Large funds took advantage of the favorable announcement to reduce their positions.
New funds dare not come in.
But we don’t have to be too pessimistic.
It has been falling for 9 consecutive days. If there is no black swan,
BTC will remain stable during this period!
When the price is rising, institutions all say they want to reach $1 million USD.
Trick us into chasing high prices.
When it falls, it is said to fall to $40,000.
Tricked us into cutting meat.
So don’t be too optimistic when the price goes up.
Don't be too pessimistic when the market falls.
Without major negative news, the market will not continue to fall.
Generally, the market falls on weekends, but is expected to rebound next week.
It is possible that it will fall back to $65,000 in the next few days.
Now we need to unload leverage, and those who have opened long contracts need to reduce their positions and lower the liquidation price.
We will consider whether to sell the spot after the rebound next week. Our spot position is still alive and profitable.
Strategy Recommendation
ETH rebounded stronger in this wave of decline
Ethereum has been pulling back for a week and a small K-line with a long lower shadow appeared near the lower support level. The lower shadow is very long, indicating that the support below is very strong.
To be precise, the market stopped falling on June 12 and entered a period of volatility. The K-line in the next two days just followed an inertial decline.
Why do I always talk about the support level instead of the exact number? Because the support level is a small range. Take Ethereum's daily line as an example. The exact price of the white line is 3,357 US dollars. Then the area near this price is the support range. It may be a little higher or a little lower.
Judging from the current trend, Ethereum’s daily line has stopped falling, and now it is waiting for a new round of rise.
Analyze the four-hour short-term market and see if it is in the same frequency as the daily line.
1. It briefly fell below the shock zone last night, but immediately recovered this morning, which shows that the support below is very strong.
2. The previous four-hour K-line closed with a "bullish engulfing", which is a stop-loss signal.
3. Although it broke the previous low, the amplitude was not large. Logically, it would continue to fall if the volume fell below the shock zone, but it closed up immediately afterwards, which shows that the strength of the bears is not strong.
4. The K-line of the previous four hours began to increase in volume, indicating that bulls have begun to intervene.
Through the above analysis, it can be concluded that Ethereum's four-hour short-term decline has stopped, and this position is a good short-term entry point.
A small-level stop-loss will evolve into a daily-level stop-loss, but the current situation is that stop-loss signals have appeared on both the four-hour and daily levels.
Judging from the recent trends, Ethereum is slightly stronger than Bitcoin. As the time for Ethereum ETF to start trading is getting closer, it will be time for it to develop its own market trend.
ETH's ETF will be approved in July. Pay attention to the ETH ecosystem:
ETH
Uni: Trading protocol for ETH
ENS: Ethereum Domain Name Protocol
SSV: The ETH Staking Protocol
ETHFI: ETH staking agreement
You can arrange some positions and wait for the price to rise before selling them.
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