The crypto market is witnessing a battle between bulls and bears. After a strong breakout to 102724, it fell below 101288 and accelerated downwards, hitting a low of 96181, a drop of 6500 points or 6.37%. Ethereum also broke its short-term upward channel, dropping to a low of 3355, a decrease of 389 points or 10.4%.

In a bull market, sharp drops and spikes are common. The head and shoulders bottom support is at 94500—95500. If this level is broken, a downward C wave cannot be ruled out. For now, we need to see if a rebound can reclaim 100000; if it does, we may still see a consolidation phase.

Bitcoin

Bitcoin breaking below the 100000 mark has shattered the psychological price level for many bulls. Sharp drops in a bull market are normal phenomena. There was a liquidation of 561 million, with over 187,000 people liquidated, mostly long positions. The 4-hour upward trend has broken, and we need to pay attention to the rebound strength. If it cannot reclaim above 98400—100000, further declines are possible. The key support for this wave of increase is at 94500—95500. The previous 4-hour head and shoulders neckline has broken, and we will need to test the 91500 support.

The daily chart is currently testing the MA20 and MA60 support levels. The rebound strength shows a risk of breaking down. Recently, Bitcoin has been somewhat correlated with the Nasdaq and S&P. Last night, the Nasdaq fell by 375.3 points, and Nvidia's market value evaporated by 1.7 trillion. Federal Reserve Governor Lisa Cook has issued a rare direct warning about the U.S. stock market, stating that many asset classes, including stocks and corporate bonds, are highly valued.

Support: Pressure:

Ethereum

Ethereum dropped 9% in one line, returning to near the starting position at a low of 3336. As of the time of writing, no significant rebound has been observed. We will first look at the rebound strength from the oversold condition, with resistance above at 3444—3555. For Bitcoin and Ethereum, we are still focused on whether this is a consolidation or distribution phase, and whether there will be a downward C wave. Currently, the situation remains unclear, and we will continue to monitor the market.

Support: Pressure:

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