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I was unable to update for a day due to a cold, and I appreciate the concern from all my fans. Last night, the U.S. stock market took a dive, and the crypto market didn't escape either, resulting in a sharp drop that set a lower entry price.

Currently, there might be a slight rebound during the day, but I fear there will be another drop later tonight. However, since last night’s decline was quite severe, it stands to reason that it shouldn't continue to fall today; after all, short-term indicators need a breather to recover.

Back to the main point, many in the market attributed last night's plunge to the JOLTs job openings data and the ISM non-manufacturing PMI data released at 11 PM. These two pieces of data were indeed significant; one showed job openings at an all-time high, indicating abundant employment opportunities and potentially lower unemployment rates.

The other PMI exceeded expectations, suggesting a strong economic outlook. The data was so good that the market misinterpreted it: a rate cut from the Federal Reserve? What are you thinking? There’s no reason for that; at most, there might be two cuts, or even just one decisive action.

As a result, panic ensued, with large investors pulling out and retail investors left to suffer. At 11 PM, a wave of volume hit the market, leaving it in disarray. I reviewed the situation myself, and while the volume was highest at 11 PM, if you look closely, the market had already started to decline around 5 PM.

To be honest, while these data points are somewhat related to unemployment and non-farm payroll data, they are not officially connected. But the market doesn’t listen to explanations; it dropped anyway, causing the U.S. stock market to react similarly.

Next, as I mentioned in my article on Monday, we have several important data releases this week: tonight at 9:15 PM, we have the small non-farm payrolls, and although the U.S. stock market will be closed tomorrow, we will still see the Challenger job cuts data, followed by the main event, the non-farm payroll data on Friday.

Based on the current trend, if last night’s drop was indeed caused by the job openings and PMI data, the upcoming employment data is likely to be volatile, and market sentiment could flip at any moment.

As for the non-farm payrolls, it’s too early to say anything now. I’ve decided to wait and see if the market can stabilize over the next couple of days. After all, last night’s drop brought the market back to levels seen after Christmas, effectively resetting everything. When this wave of panic will subside depends on the market's gradual recovery.

Returning to Bitcoin, last night’s drop crushed the confidence of many who were bullish. Those who made short-term profits exited, and those who were losing cut their losses. This sell-off was even harsher than I anticipated. This panic might also present an opportunity for short-term recovery.

From a short-term support perspective, there are still quite a few positions around the 96k mark supporting the market, and the defense line around 95k is currently holding strong. However, to stabilize, we probably need to wait until after the non-farm payroll data is released.

Master Looks at Trends:

Resistance Levels:

First Resistance Level: 97500

Second Resistance Level: 99000

Support Levels:

First Support Level: 96350

Second Support Level: 95200

Today's Suggestions:

Before the 97.5K level stabilizes, I will maintain a bearish outlook, only looking for opportunities during very short-term rebounds. After breaking the first resistance and the downward trend line, a short-term rebound can be expected, but adjustments may occur again around the 20-day moving average and the 99K area, so be cautious of risks.

Although there has been a significant drop, the market has not yet shown clear signs of a low buying zone, and buying sentiment remains suppressed. If trading volume is insufficient during the rebound phase, we should continue to adopt a bearish mindset.

Additionally, the first support level coincides with the 20 and 60-day moving average support areas on the daily chart, while we should pay attention to the 96-96.3K area below as an important support range. I maintain a bearish outlook, and for very short-term trades, if a short position is taken during the rebound phase, profits can be taken around the 96-96.4K area.

1.8 Master’s Swing Trading Setup:

Long Entry Reference: Buy in the 95200-96000 range with small losses and light positions. Target: 97000-97500. If there’s a pullback to the 92-93k range, go long directly.

Short Entry Reference: Sell in the 98500-99000 range with light positions. Target: 97500-96350.

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