Hello everyone! A new day, a new opportunity, welcome to today’s morning review session, I am your old friend Web3 Beast! First, let’s review the market dynamics of the past few days.
ETH1-day K-line
The cryptocurrency market has experienced significant volatility again recently. The price of Bitcoin once fell below $56,000, but then rebounded slightly and is currently stabilizing around $56,700. This volatility is mainly affected by the macroeconomic environment, including expectations of an upcoming US recession and the potential approval of a Bitcoin spot ETF.
In addition, the discount space of Grayscale GBTC is gradually shrinking, and the market selling pressure has eased. Within 6 days after the opening of the ETF, the total transaction volume has exceeded 16.6 billion US dollars, and more than 1.2 billion US dollars of funds have continued to flow in. However, it should be made clear that the transaction volume of the ETF is not equivalent to the overall capital flow of the BTC trading market. Only the funds that actually enter the BTC transaction will have a direct impact on the market.
From a technical perspective, Bitcoin is currently in a downward channel. However, the volatility in the past two days is just near the previous low, making the market dynamics particularly subtle. The four-hour MACD indicator may be foreshadowing the arrival of a wave of correction. Therefore, from the perspective of short-term operations, it is recommended that long operations during pullbacks are a relatively safe strategy. You can go long at any point below $56,000 and set $55,000 as a stop loss point. The upper resistance level needs to pay attention to $57,500-58,000. Investors can grasp the operation according to their own judgment.
At the same time, Ethereum and other Layer 2 networks also performed strongly. With the upcoming launch of Proto-danksharding of EIP-4844, Ethereum's transaction efficiency and scalability will be greatly improved, which makes it possible for Layer 2 networks such as Polygon and Arbitrum to occupy a larger market share in the future.
In summary, despite the uncertainty in the market in the short term, the long-term prospects of Bitcoin and Ethereum are optimistic. Whether from a technical or macroeconomic perspective, the market is brewing a new wave of opportunities. I hope everyone will remain rational and cautious in trading.
If you are confused about market fluctuations, don't know how to judge trends, or want to learn more about blockchain and contract trading, welcome to join our community! We will provide in-depth market analysis, blockchain basics, and practical trading strategies to help you navigate the market.
The above is today’s morning review. Thank you for your attention and look forward to seeing you tomorrow!
