The market has taken a sharp turn into a corrective phase, and the rebound from the recent oversold conditions has ended faster than anticipated. Yesterday, I advised considering reducing positions alongside dip-buying opportunities, but unfortunately, I couldn’t act in time to trim my holdings before the downturn began. Despite the decline, the sharp drop seen two days ago has likely marked a temporary bottom. Even if further corrections occur, the chances of prices breaking significantly lower remain minimal.
Such panic-induced sell-offs often deal a severe blow to market sentiment and investor confidence. As a result, the market now requires time to stabilize and recover. That being said, the low established two days ago appears to be a strong interim support level. Moving forward, we can expect prices to oscillate and retest this support multiple times. Breaking below these levels seems unlikely, making it an ideal range for placing calculated buy orders.
For those feeling uneasy, there’s no reason to panic—this bull market still has room to grow. The ongoing interest rate cut cycle provides a solid foundation for optimism, and the market has yet to see the full impact of Trump’s upcoming presidency. The recent sharp decline can be viewed as a natural correction following an extended period of gains, partially driven by overexuberance surrounding Trump’s anticipated policies. Now that this correction is underway, it presents a moment of clarity to assess strategies and focus on what’s next.
Looking at specific price levels, the market will likely continue to consolidate, testing key support zones such as ETH near $3000 or BTC around $88,000. On the upside, any rebound is likely to face resistance near the highs from yesterday or the points where the recent declines began. Reviewing candlestick charts for individual assets can offer a clearer picture of these levels.
Overall, this is a good time to take a breather and focus on short-term swing trades for those looking to remain active. By carefully navigating this period of consolidation and focusing on strategic entries near support levels, traders can take advantage of this market reset. Thank you for your ongoing support and interest.
