The US stock market plummeted and Grayscale sold off. The crypto market is in crisis. Can BTC/ETH survive the crisis? Tonight is crucial!
The continued decline of US stocks last night brought great pressure to the cryptocurrency market. After a night of gambling, there was a large amount of selling in the Asian market today, and the key price failed to hold.
For the rest of this week, we need to pay close attention to the daily position and be prepared for defense. Will the GDP data to be released tonight bring a turnaround to the market and enable the daily line to rebound?
For BTC:
The support level is around 62,400, which is a key position on the daily line and an important defensive line before this week's narrative. It will be more advantageous to hold this position before economic data and the crypto conference. If the price can rebound above 65,000 during the day, preferably above 65,700, the situation will be better.
For ETH:
The situation is more difficult. Under the threat of Grayscale's selling, the selling pressure in the Asian session is relatively large, and the relevant close support has basically been broken. If you look at the support below, it seems too pessimistic. There are two positions that need to be defended during the day. The first is the MA200 position of 3200. If this position is stable, the price will stabilize in the short term. The second is the 3360-3400 range. If the price can rise to this range during the day, it will be more favorable for the subsequent rise.
ETH's trend is more pessimistic than BTC, and so is the market sentiment. However, if the index continues to fall, it will touch the oversold rebound sentiment near 30.
In summary:
The decline and selling of US stocks and Grayscale's selling are the main factors leading to the price drop, especially the sharp decline of ETH during the day, which caused BTC to follow the decline, and the market sentiment gradually turned pessimistic.
However, there are still two hot spots this week that may bring opportunities: tonight's GDP data and tomorrow's core PCE economic data, as well as the crypto conference attended by Trump and relevant congressmen on the 27th. These may bring a turnaround to the market again.
However, overall, it is still not advisable to be too optimistic. If these two narratives are positive, but the BTC price cannot break through the daily 70,500 position, then the market that loses the narrative will begin to trade the expectation of interest rate cuts, and may face a shock callback afterwards.
The most important thing is to see Trump's performance on the 27th. It will be very important whether he can throw out a narrative with continuity and heat in his speech.
