Sunday Early Morning Bitcoin and Ethereum Market Analysis and Daily Summary
The current market is in a consolidation phase, which is typically a buildup process before a trend starts. Market liquidity significantly shrinks over the weekend, and Bitcoin failed to continue its upward movement after an early morning rebound, without a deep pullback, instead oscillating narrowly around the critical level of 88000, with daily fluctuations of less than a thousand points. The battle between bulls and bears is intense, and no clear direction has yet formed, as the market gradually digests the discrepancies in positions caused by previous fluctuations by exchanging time for space.
Subsequent directional breakthroughs still require waiting for clear signals from volume or news.
From the observation of the market structure, the 1-hour candlestick chart shows an alternating pattern of small steps, with the volatility range continuing to narrow, and trading volume simultaneously shrinking, indicating that the forces of bulls and bears have temporarily entered a balanced state. The market is overall in a phase of adjustment. Oscillatory consolidation is often a necessary process before a trend starts, and the stabilization of key support levels along with the gradual accumulation of volume is laying the foundation for future trends. Short-term oscillation does not change the medium to long-term logic; maintaining patience amidst uncertainty and anchoring on core trading structures enables one to take the initiative in the evolution of the market and seize trend opportunities after breakthroughs. In terms of operations, it is recommended to wait for effective opening of volatility space before choosing to intervene in the direction of the trend.
Trading Suggestions:
Focus on the support around 87700 for Bitcoin, consider setting up long positions with a target towards 89000.
The range of 2940-2970 for Ethereum has structural support, consider gradually setting up long positions with a target towards around 3050.
