Bitcoin and Ethereum 4H Analysis: Unexpected Drop, But Bottom Support RemainsBitcoin and Ethereum have recently experienced an unexpected drop in price, attracting market attention. Although the decline has surpassed expectations, the current trend is not entirely surprising
Bitcoin and Ethereum 4H Analysis: Unexpected Drop, But Bottom Support Remains
Bitcoin and Ethereum have recently experienced an unexpected drop in price, attracting market attention. Although the decline has surpassed expectations, the current trend is not entirely surprising. This article will analyze the 4H charts of Bitcoin and Ethereum to explore the current market conditions and the potential for future movements.
Bitcoin 4H: Breaking Support, But Bottom Support Remains Strong
Bitcoins current decline can be said to be both expected and unexpected. It was expected because this wave of decline was anticipated, and mentioned multiple times, and during the decline last night, it bounced back from the support low point. What was unexpected was the sudden large bearish candle this morning, which directly broke through the support area, with a decline far exceeding expectations.
The current market shows that this decline has directly tested the rising trend line and support area below. The support level at this position is still relatively strong. We can see that after breaking through the support, the price did not continue to fall sharply, but instead rebounded.
Future Outlook:
- Will it continue to fall? Although it broke through support, the bottom support level is still relatively strong. For now, there may be further fluctuations in the short term, but the possibility of a large decline is low.
- Should we chase at this position? After a large decline in price, we should pay attention to its retracement. Before confirming a trend reversal, it is recommended to be cautious with chasing the rise.
- Is this trend a normal pullback or a continuation of the decline? From the rise that started from the bottom on August 8th, the current decline has not yet reached the level of a continuation decline. Therefore, there is no need to focus on this being a continued decline for now.
Ethereum 4H: Large Decline, But Bottom Support Remains
The decline in Ethereum has also been relatively large, exceeding expectations. From the overall perspective of this wave of decline, it has not yet reached below the 0.786 level of this rise, and the possibility of this decline being a shakeout cannot be ruled out. It is currently at the lower support position. If it does not break below 0.786, we do not need to worry about a trend reversal for now, and we can instead focus on the retest at the support position.
Future Outlook:
- Will it continue to fall? As long as it does not break below 0.786, a significant decline is not expected in the short term.
- Should we chase at this position? Similarly, it is recommended to be cautious with chasing the rise and wait to confirm a trend reversal before taking action.
- Is this trend a normal pullback or a continuation of the decline? It is not yet certain and needs to be observed based on the subsequent trend.
Summary:
Bitcoin and Ethereum have recently experienced unexpected drops, but they are still currently at the bottom support level and there is no need to worry too much about a trend reversal. It is necessary to continue to observe market dynamics and be cautious in operations, avoiding blindly chasing the rise or selling off.
Appendix:
- Bitcoin 4H chart
- Ethereum 4H chart
Disclaimer: This article is for reference only and does not constitute investment advice. Investment involves risk, and please be cautious when entering the market.
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