Gu Yue: The sudden drop caught us off guard, and the decline has not yet found its bottom. The drop will continue in the evening.

Good evening, everyone. I am Gu Yue. The sudden drop caught us off guard. Bitcoin fell from around $99000 yesterday to about $92000, a drop of nearly 7000 points. Ethereum fell from around $3550 to about $3300, a drop of nearly 250 points. The decline is significant, and currently, the hourly line has dropped to the lower band of the Bollinger Bands. In terms of the current situation, the downtrend has not improved. The four-hour MA line has crossed below the middle band of the Bollinger Bands and is diverging downwards. The decline will further expand. The current position has not reached the bottom, but there is also significant risk in going short at this position. A better suggestion is to wait for a rebound after the decline to go long, which is more stable.

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

Long Bitcoin near $91000 with a target of $94000

Long Bitcoin near $94000 with a target of $91000

Long Ethereum near $3200 with a target of $3400

Short Ethereum near $3400 with a target of $3200

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This article only represents personal views, for reference only, and is not a basis for actual operations. Market changes are unpredictable, and profits and losses are self-responsible. If you want to understand the latest trading strategies, follow the public account: Gu Yue KOL

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