12.2 Afternoon
Yesterday, cryptocurrencies generally declined 📉, and U.S. stocks also generally declined 📉. The reason? It lies in the Bank of Japan clearly stating its intention to raise interest rates this month. There is considerable discussion about the negative impact of Japan's interest rate hike on our crypto market, and it is undeniable that Japan's rate hike will tighten global liquidity, which will have a negative expectation for global asset pricing.
Yesterday, the lowest point dropped to around 84700 and began to rebound, while U.S. stocks opened at a maximum of around 86700, also having a two thousand point range. There is still pressure from above at 86900, which was not broken, leading to a pullback until reaching around 83800. Currently, the market trend is starting to rebound; if the support level of 82300 is broken, it will open the floodgates, but if not, we will still look for a pullback.
The morning star pattern formed on the 4-hour K🧵 is a strong bullish 📈 signal, and the price has broken through the short-term moving average, with momentum showing some enhancement. However, the extreme reduction in trading volume brings significant uncertainty to the sustainability of the rebound. Furthermore, the long-term moving average is still in a downtrend, indicating that the medium to long-term market structure has not yet fully recovered.
Operational suggestions:
Bitcoin can be bought around 86000-86550, with a target of around 88000—89000.
Ethereum can be bought around 2785-2765, with a target of around 2860, looking to break through to 2895.
