The cryptocurrency market is in a frenzy! Bitcoin plummeted from 124,000 to 116,000, while Ethereum crashed from 4,800 to 4,300 before skyrocketing! Is this wave of volatility a gift or a trap?

CN
4 hours ago

Tracking real-time hotspots in the cryptocurrency market and seizing the best trading opportunities, today is Monday, August 18, 2025, I am Wang Yibo! Good morning, crypto friends! ☀️ Die-hard fans check in 👍 Like to make big money 🍗🍗🌹🌹

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In the past week, the cryptocurrency market has been a "roller coaster" of excitement. Bitcoin first broke through its historical high, igniting the market's enthusiasm; then it quickly faced a deep correction, with prices plummeting. In such extreme fluctuations, investors may find themselves trapped if they hesitate for even a moment, or face liquidation if they act too rashly, leaving countless people caught off guard in the switch between rises and falls.

Last week, the market continued its strong bullish momentum. Bitcoin stabilized around the 116,400 level at the beginning of the week and then surged to 122,000; after a brief pullback to around 118,500, it gained strength again due to favorable CPI data, reaching a new historical high of 124,488. Ethereum's movement was highly synchronized with Bitcoin, stabilizing around the 4,160 level at the beginning of the week before rising strongly, peaking close to the 4,800 mark.

As expected, a technical pullback occurred after the highs, with Bitcoin dipping to around 116,700 and Ethereum touching around 4,360. The market then gradually stabilized, with the focus steadily moving upward. Short-term resistance triggered a pullback, but the extent was limited and did not undermine the overall upward trend. After a weekend of consolidation, prices have regained stability, and the overall pattern has returned to a bullish trajectory.

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Yesterday morning, Bitcoin began to rebound from a low of 117,121, fluctuating upward during the day to test a high of 118,537 before retreating. In the early morning, it dipped to a low of 117,265 and then oscillated slightly around the 117,600 range.

Recently, the price has maintained a tug-of-war pattern between bulls and bears, with the overall trend still constrained by the key resistance and support levels forming a range. The weekend market exhibited typical range-bound characteristics, with prices repeatedly testing the upper and lower boundaries. This sideways consolidation has lasted nearly 72 hours, during which there were multiple attempts to break the range, but all retreated due to weak buying pressure, indicating that the current market is relatively stuck between bulls and bears, lacking sufficient momentum to break the deadlock.

In the short term, the market has entered a phase of mutual tugging between bulls and bears, with the overall trend still oscillating within the range. The strategy remains to sell high and buy low.

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Ethereum's movement has been relatively stable. Yesterday morning, it started a one-sided upward trend from the support level of 4,392. After confirming the support's validity with a pullback at noon, it continued to rise, reaching a high of 4,573 during the European session. In the evening, it faced resistance at this high point and retreated, dropping to a low of 4,425 before rebounding, currently correcting around the 4,480 level.

Overall, while Ethereum shows short-term rebound momentum, there is significant pressure above, and the market still needs more buying support to sustain the upward trend. The market is currently in a tug-of-war phase, and the overall pattern remains characterized by range-bound oscillation. It is recommended to continue adopting a strategy of selling high and buying low around the range.

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If you are feeling lost—don’t understand the technology, don’t know how to read the charts, unsure when to enter the market, don’t know how to set stop losses, don’t understand take profits, randomly increasing positions, getting trapped while trying to catch the bottom, unable to hold onto profits, missing out on market movements… these are common issues for retail investors. But don’t worry, I can help you establish the right trading mindset. A single profitable trade speaks louder than a thousand words, and finding the right direction is better than repeated failures. Instead of frequent trading, it’s better to strike precisely, making each trade more valuable. If you need real-time guidance, you can scan the QR code at the bottom of the article to follow my public account. The market changes rapidly, and due to the timeliness of reviews, subsequent trends will be based on real-time layouts. I look forward to moving steadily forward in the market with you.

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