2.7 Midday Market Analysis!

This wave of Bitcoin's price movement is truly a textbook example of a "breakdown and capitulation." Last night, I emphasized in my post that the previous high at 70095 is the lifeline for bulls and bears—once broken, it's a big trap. It now appears that this decline was entirely within my forecast. Why did it fall so sharply after breaking support? It's simple: above 70,000, there were virtually no buy orders—only short positions. Once the key support was broken, it triggered a panic sell-off among retail traders, creating a waterfall decline like an avalanche.

Currently, the market is in a very awkward position—neither up nor down, just a consolidation in the middle of a downtrend. Everyone is watching and unsure of which way to go. If you expect a rebound, you need to first regain the 68,958 level to stabilize your position. To truly reverse the trend, you must reclaim the 70,095 key level. If it can't hold and breaks below the support zone of 67,718-67,222, then the decline will continue, testing the low of 66,106.

$BTC Trading strategy: If the hourly chart can volume-stably hold above 68,478, consider a small long position aiming for a rebound to 69,246; otherwise, if it breaks below 67,946 and rebounds are weak, it's a good opportunity to short, just set your stop-loss accordingly. Ethereum is similar—following Bitcoin's lead, it has fallen back into the range and even broke below the midline, indicating a weak trend. If it can't recover above the midline, it will likely retest the lower boundary of the range around 1947.

$ETH For trading, a break above 1989 can be a small long attempt, while a break below 1970 suggests a short opportunity on a rebound, with support levels at 1928-1863.

The weekend is coming soon, and Trump’s side might cause some trouble. During such volatile times, everyone should set proper stop-losses, avoid holding onto positions blindly, and prioritize protecting your capital.