Cryptocurrency Market: Wild Fluctuations Alongside U.S. Stocks

Bitcoin has hit a new low, and Ethereum has plummeted significantly. The cryptocurrency market has recently resembled a high-energy drama, with its ups and downs. The current volatility in the market is closely linked to the decline in U.S. stocks. As the cryptocurrency market increasingly moves towards mainstream acceptance, its correlation with U.S. stocks has become more pronounced. From last night to today, U.S. stocks experienced a sharp decline, with Tesla's stock price halving, and the crypto market followed suit, moving downward in tandem with U.S. stocks. Opening the market page daily now quickens the heartbeat. Bitcoin was firmly above $80,000 yesterday but fell to $76,500 today; Ethereum's drop is equally staggering, nearing $1,700. Such market movements are indeed alarming. Turning to the altcoin market, the situation is even more dismal. Recently, the vocabulary used to describe the plummeting altcoins is nearly exhausted, and today's conditions are particularly exaggerated. As a seasoned investor who has personally experienced the last bull-bear transition, I can confidently say that the current market sentiment is more pessimistic than when the bear market bottomed out in 2022.

Market Focus and Pressure Coexist

Next, the market is focused on the February CPI data set to be released on March 12, with hopes that it will be lower than expected, bringing positive news to the market. However, the Japanese monetary policy meeting on March 19 has triggered strong risk-averse sentiment, further increasing the already fragile market pressure. Currently, the market rebound is weak, and various signs indicate that there is still room for further declines, with the first half of the year filled with uncertainty. The market generally predicts that the Federal Reserve will cut interest rates by 25 basis points in June, September, and December, totaling a 75 basis point reduction. However, it is worth noting that before the rate cuts are officially implemented, bulls may face a round of "liquidation." This week, attention should be paid to the CPI data on the 12th and the Japanese monetary policy meeting on the 19th. If the CPI data is lower than expected, the market may experience a brief pullback. During this period, intraday swing trading may become the mainstream operating method, and Meme coins are likely to take the opportunity to stir the pot, further complicating the market.

In the face of such a chaotic market situation, investors must remain calm. Bottom-fishing operations should be approached with caution; only by accurately grasping market trends can one stand firm in a rapidly changing market. Given the pessimistic outlook for the first half of the year, investors should avoid impatience and carefully observe market trends, as this is key to surviving in the market. Once the bulls have been liquidated, the market bottom may quietly arrive; until then, patience is essential to seize genuine market opportunities!

Market Analysis: The Tug of War Between Bulls and Bears Continues

From the market perspective, Bitcoin and Ethereum have begun to form a pin bar with long lower shadows, indicating a potential bottoming rebound and consolidation. However, the price has not yet broken through previous highs. Although the market has experienced significant volatility and the current rebound has intensified, with a rebound exceeding 4,000 points, we have also gained a considerable amount of profit space, but the overall bearish trend has not changed, and the price has consistently failed to surpass previous highs. From the 4-hour chart, there is a three consecutive bullish candlestick pattern, with the previous high currently around the $84,000 mark. If this level cannot be effectively broken, the market may form a pattern of step-by-step retracement. Tonight, we need to closely monitor the situation regarding the upper resistance level; once broken, it will disrupt this downward trend, and we will adjust our operational strategy based on real-time market conditions.

If you are feeling lost—don’t understand the technology, can’t read the charts, don’t know when to enter the market, don’t know how to set stop losses, don’t understand take profits, randomly increase positions, get stuck while bottom-fishing, can’t hold onto profits, miss market opportunities… 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; 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 progressing steadily with you in the market.

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