After the continuous decline in the past few days, the crypto market ushered in a big waterfall! Bitcoin fell below $48,800, Ethereum fell below $2,110, and the market ushered in a bloodbath and a comprehensive plunge.
This plunge is different from the past. There was no rebound in the process, which gave people a feeling of extreme despair and even no bottom. I don’t recommend that you open more or buy aggressively on the left side, but wait for the right side to confirm stabilization, such as the three-day line closing at $50,000 or other bottom support of $45,000-50,000. Because this wave of decline is a bit out of the technical aspect, it means panic selling, so it is safest to wait for confirmation to stabilize before entering the market.
Financial crisis? Is the global recession coming?
The US employment data on the 2nd was released, with an unemployment rate of 4.3%. The data was not good, which triggered market concerns about the US economic recession, and then led to a decline in both the US stock market and the cryptocurrency market.
Japan's circuit breaker, financial markets plummeted
Japanese and South Korean stock markets continued to open lower on Monday, with the Japan Topix Index triggering a circuit breaker mechanism, falling 20% from its previous high and entering a technical bear market; the Nikkei 225 Index once fell 7%, losing 35,000 and 34,000 points in succession, and the volatility index soared 50% to a new high in April 2020. The banking stock index fell 9%, and Mitsubishi UFJ Financial Group's stock price once fell 21%, the largest drop in history. South Korea's KOSPI index fell 4%, and gold plunged $15!
Is the bull still there? Is it a big wash or a bear coming?
Today's Yinxian fell below the freezing point, giving up the long fantasy. This is exactly the same as the 48,000 in 22 years. At that time, I imagined that I could rise slowly over the weekend, but two Ks fell below the support. The next week, it fell for five days until the daily line stopped at 30,000, and then I took a breath. I will never forget it until now. Give up the long fantasy, especially with leverage. There is hope only if there is no liquidation. Even if the price goes up next week, it is wrong to close the position and confirm the reversal trend.
Why are these two negative K-lines breaking the support so scary? The previous week was smashed, and it should have rebounded with low volume to the support level. Corresponding to the current market, it is normal to rebound with low volume to around 60,000 and then continue to fall. However, if it is so weak that it cannot stand at the big support level at the weekend, it means that the market is really bad.
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