Bitcoin Surges Past $68,000, Bulls Remain Strong, Ethereum Poised for Breakout: In-depth Market Analysis and Investment Strategy

Bitcoin Surges Past $68,000, Bulls Remain Strong, Ethereum Poised for Breakout: In-depth Market Analysis and Investment StrategySince entering October, the global economic landscape continues to be complex and volatile. However, the Federal Reserve maintained interest rates unchanged, hinting at potentially easing monetary policy in the future

Bitcoin Surges Past $68,000, Bulls Remain Strong, Ethereum Poised for Breakout: In-depth Market Analysis and Investment Strategy

Since entering October, the global economic landscape continues to be complex and volatile. However, the Federal Reserve maintained interest rates unchanged, hinting at potentially easing monetary policy in the future. The People's Bank of China has also signaled further loosening of monetary policy. These macroeconomic factors have injected new vitality into the cryptocurrency market, including Bitcoin, boosting investor confidence. Bitcoin's market capitalization has surpassed 60%. This article will analyze Bitcoin's trajectory from multiple perspectives to help readers better grasp investment opportunities.

Market Review and Technical Analysis

Recently, Bitcoin's price broke through $68,000, rising approximately $1,000 from its previous position around $67,000. This upward trend is supported by several factors, including market expectations for China's easing policies, positive responses to Trump's poll recovery, and the introduction of Mt. Gox's delayed repayment plan, alleviating market concerns about Bitcoin's oversupply. Additionally, recent media reports suggest a seasonal bullish trend for Bitcoin in the second half of October, further bolstering market optimism.

Bitcoin Daily Chart Analysis

• Bull Flag Structure Consolidation: Bitcoin has been consolidating within a large bull flag structure for over six months. Although it hasn't yet produced a valid breakout, it appears poised for a rapid upward breakout. Bitcoin is currently in a rebound phase within a short-term ascending channel.

• Daily Chart Signals: In recent days, Bitcoin daily charts have closed with several small-bodied candlesticks, indicating divergence in the short term near the top of the bull flag structure we're closely watching, which spans seven months. This divergence is a signal for short-term consolidation within a smaller trading range.

• Ascending Channel Analysis: The current Bitcoin ascending channel represents the strength of past price movements. A direct push upward through this channel would signify a breakout from the double-bottom bull flag structure, leading to an upward rebound channel. If the price surpasses $68,600, it would complete a breakout from the long-term consolidation pattern, setting the stage for higher targets. However, this possibility has not materialized yet, and a retracement before a directional choice remains possible. The triple-push rebound within the channel and the current parallel top formation suggest a 4-hour or daily chart correction, leading to a period of consolidation before a directional decision.

• Short-Term Trading Strategy: Currently, I and my associates are not actively buying. While the possibility of an upward price breakout is substantial, entering at these levels is less attractive than waiting for an actual breakout. If the price directly breaks through the top of the bull flag downtrend line, reaching $68,600 or $68,700, I might consider directly chasing the rise and setting a stop-loss below the ascending channel's support level.

• Seeking Favorable Patterns: Another strategy would be to look for short-term patterns that favor us, such as entering a long position after a drop below the channel, a retracement to prior lows or key support levels, or by chasing the breakout of a pattern from the support level. Overall, I believe that if the current price levels are met with a significant probability of continued new all-time highs and a sustained breakout, these two patterns present favorable opportunities. However, whether this bullish rebound will end or if a further downward decline is likely is less probable, as the moving averages across various timeframes and the daily chart's bullish alignment remain intact.

Ethereum Price Analysis

• Key Level Breakout: Ethereum broke through a critical daily chart level at approximately $2,525 this week. Following the breakout, the daily chart moving averages formed a bullish alignment, and the price has entered a small consolidation range in recent days, characterized by small-bodied candlesticks with extended upper and lower shadows. This can be considered a short-term trading range.

• Large Triangle Consolidation Analysis: Ethereum can currently be viewed as consolidating within a large triangle pattern. The top of the triangle features a downward-sloping downtrend line acting as resistance. The price recently tested this resistance at the top of the triangle. The support at the bottom is crucial and has remained valid despite multiple tests. Whether Ethereum will break out depends on the direction chosen by price action. I believe a short-term Ethereum breakout is quite probable. If it breaks out of this large triangle pattern and surpasses the previous all-time high of $2,707, a direct long position could be considered, with a stop-loss set below the trend line.

Overall Operational Recommendations

• Bullish Strategy for Bitcoin: Across various timeframes, the Bitcoin Vegas Tunnel remains bullish. If it drops below the short-term channel, any subsequent long entries could be considered based on price action support levels, including the support levels formed by the 1-hour or 4-hour Vegas Tunnel across different timeframes. Bitcoin's current price and open interest in futures markets are at high levels, indicating strong bullish dominance. The average funding rate in the Bitcoin perpetual market is also well-balanced, around 0.0118.

• Breakout Strategy for Ethereum: Ethereum has already broken through a critical daily chart level and formed bullish alignment. A short-term breakout is highly probable. If it breaks out of the large triangle pattern and surpasses the previous all-time high of $2,707, a direct long position can be considered, with a stop-loss set below the trend line.

Investment involves risk, and trading requires caution! The views expressed in this article are for informational purposes only and should not be considered investment advice. We hope the analysis provided will assist readers in understanding current market dynamics and formulating more robust investment strategies. May you experience continuous good fortune and seize the opportunities offered by this market cycle.

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