0725 Bitcoin/Ethereum market report 📢📢📣📣

1. The price of Bitcoin shows a characteristic of technical recovery and intense long-short game after the sharp drop on the expiration date of options. With a rapid rebound driven by short covering and capital involvement after the expiration, it indicates strong support at $115,000. The short-term market reflects a divergent state where institutional capital is protecting the market while retail investors are in a state of panic selling.

Bitcoin plummeted from $118,500 in the early trading session, quickly breaking through the critical support line at $116,000, hitting a low of $114,800, marking the largest single-day drop in nearly a month. The 4-hour candlestick chart has formed a head-and-shoulders pattern, with the RSI and MA-CD histogram both entering the oversold zone. However, the divergence in volume and price (new price lows accompanied by a surge in trading volume) suggests that panic selling is dominating the market in the short term. If it continues to breach $115,000 (the upward trend line), it could accelerate a pullback to $112,500 (200-period moving average). Therefore, caution is needed regarding the secondary liquidation risk for long positions in the derivatives market. Conversely, if a rebound recovers $117,500 (the middle band of the Bollinger Bands), it may trigger a technical correction.

📗📗Summary: Bitcoin is currently under dual pressure from options expiration and miner selling pressure. In the short term, attention should be paid to the effectiveness of the $115,000 support zone. Short-term volatility may intensify, but the medium to long-term upward trend remains unchanged. The direction of the breakout will depend on trading volume and policy catalyst factors.

🔑🔑Trading Suggestions: 1. Bullish Strategy: Consider entering long at prices between $115,000 and $115,500, with a target of $117,000 to $118,000, and a stop loss set around $114,000; 2. If a rebound to $117,500 encounters resistance and falls back, consider entering short with a target of $115,500 to $114,000, and a stop loss set around $118,700.

Medium to long term: Accumulate in batches when the price is low, focusing on layout opportunities below $115,000, using pullbacks to lower costs and avoiding the risks of chasing highs in overbought areas.

2. Ethereum is overall showing a weak wide-range fluctuation pattern, currently in the 3500-3780 USD range. The 4-hour chart shows that the price has broken below the lower trend line of the ascending channel at 3650 USD, then further dropped to 3500 USD where it found support, quickly rebounding to the short-term pressure near 3780 on the right side. Currently, bulls are attempting to repair the broken pattern and may accumulate energy through a fluctuating form, with a higher probability of breaking upwards to 4000 USD.

🔑🔑Operational Suggestions: 1. Primarily observe and wait for the direction choice at the boundary point; 2. Short on rebounds: within the range of 3720-3760 USD, attempt to short with a light position, targeting below 3660, with a stop loss set at 3800 USD; 3. Long on stabilization: if it stabilizes with low volume around 3500-3560 USD, and a bottom divergence appears on the 4-hour chart, target 4020 USD, with a stop loss set at 3400 USD.

Special reminder: This article is for readers' reference only and should not be considered as an investment recommendation!!!