$ETH
Bitcoin is having a hard time holding the $100k range, so it is retesting the blue diagonal as support once again.
This blue diagonal is a key trend indicator, so as long as it holds, we might avoid further downside into the lower $90k range.
The recent drop isn’t due to the crypto market but a sharp decline in U.S. stocks. It’s all because of one app: DeepSeek.
Why is everyone panicking?
DeepSeek is a Chinese AI startup that surpassed ChatGPT and took the top spot on the App Store.
Its development cost was under $10 million (compared to billions for ChatGPT).
Meanwhile, ChatGPT is valued at $157 billion, while DeepSeek is worth just 0.2% of that amount.
This has made major players question whether U.S. stocks are heavily overvalued, leading to a wave of profit-taking after the market opened. Additionally, with Chinese New Year around the corner, many in China are cashing out their positions.
Don’t give in to panic. News like this always shakes up the market, but crypto has weathered far worse before 🌚