Gu Jingci: 2.6 Bitcoin/Ethereum prices experience sharp drops and surges; market sentiment still needs recovery

Bitcoin/Ethereum has recently experienced continuous significant declines, with the overall drop being relatively large, repeatedly breaking through a series of important support levels. Subsequently, in the early morning, a rebound and rally occurred from lows of 59900 and 1740, with the overall upward movement being quite substantial. Such rapid rebounds after a sharp decline are usually accompanied by correction and consolidation. After the correction and consolidation, as long as the lows of the phase are not broken, the rebound and rally are likely to continue.

On the daily chart, a large bearish candle accelerated the bottoming process. After the market opened, it continued testing the lows, briefly breaking below 60000 and 1750 before rebounding. Currently, it is operating below the lower band, with the Bollinger Bands remaining open, and short-term moving averages are arranged downward. The MACD fast and slow lines are extending downward, volume bars are increasing again, the KDJ indicator is supported near the 0 level and turning upward, and the VR indicator is consolidating around 60. The 4-hour chart shows the market experienced a continuous slow decline, followed by a slight rebound testing the 7-day moving average. The Bollinger Bands are trending downward, the MACD lines show signs of turning, volume is decreasing, the KDJ is crossing upward, and the VR indicator is consolidating near 40. The market will not rise sharply in one go; there may be pullbacks to test whether the support levels at 64000 and 1850 are effective.

Evening trading suggestions: Short at the current price of 68300 and 1980, targeting 66500-67000 and 1900-1920;

Then, in the early morning, go long at 1880-1900 and around 65500-66000, aiming for 2000 and around 68500.