The Crypto Market Swings Wildly: Bitcoin Bounces Back, Ethereum Faces PressureThe cryptocurrency market experienced a wild ride this week, with Bitcoin rebounding on Tuesday following a global market sell-off on Monday, while Ethereum, despite a rebound, remained under pressure after suffering a sharp drop on Monday, triggered by a chain of liquidations.Volatility Sparked by Global Market Sell-OffOn Monday, Japanese stocks plunged, triggering a circuit breaker
The Crypto Market Swings Wildly: Bitcoin Bounces Back, Ethereum Faces Pressure
The cryptocurrency market experienced a wild ride this week, with Bitcoin rebounding on Tuesday following a global market sell-off on Monday, while Ethereum, despite a rebound, remained under pressure after suffering a sharp drop on Monday, triggered by a chain of liquidations.
Volatility Sparked by Global Market Sell-Off
On Monday, Japanese stocks plunged, triggering a circuit breaker. Subsequently, the three major US stock indices all fell, with the S&P 500 hitting a low of 5,119, the Dow Jones dropping to 38,499, and the Nasdaq dipping to 15,708. The market reacted strongly to the US employment data falling below expectations, raising concerns about a recession and causing risk aversion and panic selling.
Macro Data from the US Eases Market Concerns
However, the market began to recover and rebound as other macro data was released during the week. The US July ISM non-manufacturing PMI reached 51.4, exceeding expectations. Initial jobless claims dropped to 233,000 in early August. These data points eased market concerns about a recession, prompting a gradual warming of the market.
Interaction of Democratic Presidential Candidate with the Crypto Industry
After Biden announced he would not run for re-election, the Democratic party nominated the incumbent Vice President, Kamala Harris, as the presidential candidate. Harris has initiated contact with executives in the cryptocurrency industry. While she has not yet made a clear statement, the market has generated new expectations for the Democratic party's future cryptocurrency policies.
Bitcoin (BTCUSDT) Market Review and Short-Term Strategies
Overall Structure Analysis
The chart shows that BTCUSDT has experienced significant price fluctuations recently, with multiple key support and resistance tests.
- Price Trend:
- Uptrend: After experiencing a significant decline, the price has gradually rebounded from the lows, forming several upward waves.
- Retracement Phase: The current price is retracing to test the validity of the underlying support, while encountering resistance near the pressure zone.
- Key Areas:
- Resistance Levels (Red Lines/Areas):
- 61,240.00USDT
- 60,916.1USDT
- Support Levels (Green Lines/Areas):
- 58,400.00USDT
- 56,800.00USDT
Short-Term Bullish and Bearish Strategies
- Bearish Strategy:
- Entry Point: When the price approaches the upper resistance level (around 60,916.1USDT), consider opening a small short position.
- Target Levels: The first target level is set near 59,969.11USDT, and the second target level can be set near the support level of 58,722.04USDT.
- Stop-Loss: Set the stop-loss above the resistance level of 61,500.00USDT to avoid excessive losses.
Risk Disclaimer
1. Market Volatility Risk: The cryptocurrency market is highly volatile and price movements can be extremely rapid. It is recommended to strictly set stop-loss orders to avoid significant losses due to sharp fluctuations.
2. False Breakout Risk: The market is prone to false breakouts near key resistance and support levels. Pay attention to trading volume and price reactions to avoid being misled by market manipulations.
3. Impact of External Factors: The cryptocurrency market is highly influenced by external factors such as regulatory policy changes, market news, etc., which can have a significant impact on prices. Stay informed about market developments.
Conclusion
Based on the current price trend and key support and resistance levels of BTCUSDT, short-term bullish and bearish strategies can be formulated. However, be aware of market volatility risk and the impact of external factors. Set stop-losses appropriately to ensure that trading risks are manageable. In actual operations, adjust strategies as needed based on market changes to ensure capital safety.
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