The market took a sharp turn into a corrective phase, and the rebound from recent oversold conditions ended more quickly than expected.
Yesterday I advised to consider reducing positions in parallel with buying opportunities on the downside, but unfortunately I was unable to act in time to reduce my holdings before the downturn began.
Despite the decline, the sharp drop seen two days ago likely marked a temporary bottom. Even if further corrections occur, the chances of prices falling significantly remain slim.
Such panic-induced selling often inflicts a severe blow to market sentiment and investor confidence.
Therefore, the market now needs time to stabilize and recover.
That said, the low established two days ago appears to be a solid intermediate support level. Moving forward, we can expect prices to oscillate and retest this support several times. A break below these levels seems unlikely, making this an ideal range to place calculated buy orders.
For those feeling uneasy, there's no need to panic—this bull market still has room to grow.
The current rate-cutting 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 seen as a natural correction after a prolonged period of gains, partly driven by excessive euphoria surrounding Trump’s anticipated policies.
Now that this correction is underway, it presents a moment of clarity to evaluate strategies and focus on what's next. Looking at specific price levels, the market will likely continue to consolidate, testing key support areas such as ETH near $3,000 or BTC around $88,000.
On the upside, any rebound is likely to encounter resistance near yesterday’s highs or where recent declines began. Looking at candlestick charts for individual assets can provide a clearer picture of these levels. Overall, this is a good time to take a breather and focus on short-term trades for those looking to stay 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 continued support and interest.
