【Is ETH Stronger than BTC? A Comprehensive Analysis of Key Support and Rebound Space】
Bitcoin has finally ended its 49-day flag consolidation. During the third touch of the flag's lower edge, there was no effective resistance. After a slight fluctuation, it broke down, resulting in a small waterfall.
Let's review this market, especially the latter half. Each rebound failed to reach significant resistance levels, and the market looked quite weak. However, influenced by the situation in Iran, short-term fluctuations were intertwined with both bullish and bearish sentiments, making operations quite challenging.
We previously mentioned that a descending flag pattern is meant to be broken, and it's just a matter of time. The overall direction remains bearish, and the current trend aligns with our expectations.
Since it has broken the descending flag pattern, it basically confirms that this rebound has ended, and the market has returned to a downtrend.
From a daily perspective, MACD has formed a second death cross near the 0 axis and is beginning to extend downwards into the bearish zone, with an unattractive shape and strong downward momentum.
However, I believe it won't continue to fall sharply from here; it will first oscillate before declining further.
There are two reasons for this. Firstly, Bitcoin is nearing the support level around 64000 to 65000, which indicates a rebound demand. Secondly, after the descending flag pattern was broken, there is also a motive for a pullback to confirm the validity of the breakdown.
However, the first height of this pullback is indeed limited. We will first look at the lower edge around 67200. If it can stand above and return to the flag pattern, there will still be an opportunity for 72000.
Personally, I remain pessimistic; the probability of encountering resistance at 67200 and continuing downward is quite high, so be mentally prepared!
Looking further down, the only visible support is the previous low around the 60000 mark. The expectation is to break through and close at around 58000 to 59000 before making a rebound. Once we reach this level, the rebound strength will significantly increase, and we will analyze it more specifically when we get there!
Finally, let's talk about Ethereum. The situation of Ethereum is similar to that of Bitcoin, but due to the strong momentum of the previous rebound, its structural form is not as poor as Bitcoin's. The major support is near the trend line at 1900, with the potential not to make a new low, and the rebound is expected to be stronger than Bitcoin, with resistance around 2100!
Operational Strategy: The position at 58000 is not too far away, just a few points of space. Friends who are deeply trapped should hold on, while those who want to add positions or enter can make a strong move at 58000.