Master Discusses Hot Topics:

First, let's talk about the beautiful stock market from last night. It already gave a signal yesterday with a slight rebound during the day. Although it hasn't fully recovered from the previous day's decline, market sentiment is clearly much more stable than last week.

As for the interest rate cut in September and the economy mentioned last Monday, at least we can breathe a sigh of relief now. The old wall lamp, Chuanzi, is now directly targeting Federal Reserve Governor Cook, knowing full well that a presidential order can't move him, but this is just blatant pressure.

In plain terms, it's either you obediently support the interest rate cut, or you can wait for me to trouble you. Chuanzi is so anxious, likely worried that there really won't be an interest rate cut in September, so he wants to force the Federal Reserve to comply in this way.

However, the market's real expectation right now is still on Nvidia's earnings report tomorrow morning. If there's good news, the entire market's expectations will soar, and of course, I also expect Bitcoin and Ethereum to make a surge.

Back to the market, before the beautiful stock opened last night, the Bitcoin spot premium index slightly retreated, but overall it remains positive. Although it didn't hit my expected 108k, it was close enough.

The liquidity in the futures market has been almost squeezed dry, as long as there are buyers willing to take over on the spot side. A little bit of bottom-fishing funds can support it, and there is still a chance to stabilize in the short term.

But the most outrageous thing is that during this wave of decline, the long positions being liquidated actually surged to the second highest since 2024, washing out how many positions? So, this decline can be considered reasonable, as it almost completely washed out the longs.

I still believe that the short-term rebound can last for several days, even a week or two. The big drop the day before yesterday was a cold shower for those crazy bulls, but a continuous rebound can reignite their enthusiasm.

The market is just like that; once emotions are high, the real big drop will be lurking behind. What is the biggest significance of the rebound? In plain terms, it attracts more people to bottom-fish, forcing the short-term bears to cover their positions, and only after clearing the field can we have the next round of a more severe washout.

And don't forget, Chuanzi has been holding back a big move. It's been a long time since he released any major good news, and in his style, it’s very likely that he will suddenly come out with a super positive news + a big bullish candle.

Now, the downward space for Bitcoin is really not much left, and going down further doesn't make much sense; going up is where the opportunity lies. Once it rushes back to 120K, the short positions worth fifty billion dollars are waiting to explode, and the scene will be self-evident.

Yesterday, I didn't update due to some matters, so I continued from the rebound of Bitcoin to around 112.8K at midnight the day before, which then directly turned around and broke below 110K, two days earlier than I expected. Yesterday, I wanted to recover 112K, but it didn't even touch it before it got weak.

However, this morning it directly broke through 112K, and this rhythm is different from the previous three-day line adjustment. The day before was a drop, yesterday was a rebound and adjustment, and today it simply broke through. Following this pattern, I still expect there to be an opportunity for a surge in the next couple of days.

Ethereum is even more interesting; compared to Bitcoin, it is still stronger. The daily trend is very strong and optimistic. But in the short term, don't blindly go long; the 4-hour level still has a downward trend.

Today, it broke through the resistance at 4460, which is a small positive. But if it can't reach 4660, then the short-term structure hasn't changed, and the bears can turn around at any time. The support level to watch is around 4380; if it can't hold, we need to be cautious of another downward move.

But there's no need to panic about the big direction; Ethereum is still in a bullish pattern. This kind of pullback is an opportunity, and the dip is just to prepare for a push towards 5000, or even up to 5550-5880.

Master Looks at Trends:

Resistance Levels Reference:

Second Resistance Level: 112500

First Resistance Level: 111900

Support Levels Reference:

Second Support Level: 110900

First Support Level: 110200

The range from 110.9 to 111K is a hard-won breakthrough point, so it must be firmly defended today; this is also the lifeline for the bulls in the short term.

If we can break the downward trend line since the 23rd, that would be a true trend reversal, and the subsequent upward space will be larger. If we break through 111.9K again, there are a bunch of short positions waiting to explode, which could trigger a short squeeze, and the market may soar instantly.

As for the current trend, there is a hint of a head and shoulders bottom on the 1-hour level, and the key is whether the neckline at 111.9K can break through with volume. But don't forget, 111K has just been broken, and it's still confirming the pullback. If it drops below in the short term, don't panic; pay attention to the support situation of the 20-day moving average on the 1-hour chart.

The first resistance at 111.9K is yesterday's previous high. If it can break through, the market can fly again, and the probability of the bears being squeezed will greatly increase.
The second resistance at 112.5K has a lot of short positions clustered here; if it rebounds to this level, it could trigger a chain reaction of liquidations, allowing the bulls to continue.

The first support at 110.9K is the strong resistance that was broken yesterday, and now it has become support. A short-term drop below is not a big deal, but we need to pay attention to the 20-day moving average trend on the 1-hour chart.

The second support at 110.2K, roughly in the range of 110.5~110.9K, can hold steady. If it drops to 110.2K, it basically indicates that the rebound has failed, and the market will return to a downward trend.

8.27 Master’s Wave Strategy:

Long Entry Reference: Buy in batches in the range of 110500-110900, Target: 111900-112500

Short Entry Reference: Not currently applicable

If you truly want to learn something from a blogger, you need to keep following them, rather than making hasty conclusions after just a few market observations. This market is filled with performers; today they screenshot long positions, and tomorrow they summarize short positions, making it seem like they "catch the top and bottom every time," but in reality, it's all hindsight. A truly worthy blogger will have a trading logic that is consistent, coherent, and withstands scrutiny, rather than jumping in only when the market moves. Don't be blinded by flashy data and out-of-context screenshots; long-term observation and deep understanding are necessary to discern who is a thinker and who is a dreamer!

This content is exclusively planned and published by Master Chen (WeChat public account: Coin God Master Chen). If you want to learn more about real-time investment strategies, liquidation, spot trading, short, medium, and long-term contract trading techniques, and knowledge about candlesticks, you can join Master Chen for learning and communication. A free experience group for fans has been opened, along with community live broadcasts and other quality experience projects!

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