Gu Yue: The sudden drop came unexpectedly, and the decline has not yet reached the bottom. The decline will continue tonight.

Good evening everyone, I am Gu Yue. The sudden drop came unexpectedly. Bitcoin fell from around $99000 yesterday to around $92000, a drop of nearly 7000 points. Ethereum dropped from around $3550 to around $3300, a drop of nearly 250 points. The drop is significant, and currently, on the hourly chart, it has dropped to the lower band of the Bollinger Bands. As for the current situation, the downward trend has not improved. The four-hour MA has crossed below the middle band of the Bollinger Bands and is diverging downwards. The drop will further increase. Currently, we have not seen a bottom, but the risk of shorting at this level is also high. A better suggestion is to wait for a decline and then go long at the bottom for more stability.

Currently, Bitcoin's support based on Fibonacci retracement analysis is at $90431, which we need to pay close attention to, as it is the support at the middle band of the daily Bollinger Bands. For Ethereum, we are focusing on the $3200 support. If everyone needs to trade tonight, it is feasible to either wait for a rebound to short or wait for a drop to go long. The upside pressure for Bitcoin is at $94300 and for Ethereum at $3430.

Long Bitcoin around $91000 with a target of $94000

Long Bitcoin around $94000 with a target of $91000

Long Ethereum around $3200 with a target of $3400

Short Ethereum around $3400 with a target of $3200

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