In this week's weekly report, we mentioned that the market may make a directional choice. The reason is that the market has been fluctuating around 27,000 for nearly two weeks, and has been unable to break through the pressure level above. The trend quantitative 12-hour warning has been indicating a bearish trend since last week. Usually in this case, the market will burst into large-scale movements both upward and downward.
A 6-hour low appeared in the middle of the week, and the market had a chance to return to the top of the trend, but ultimately failed and continued to fall yesterday to near the previous low.
We also gave a wave pattern judgment on the current market yesterday. It is probably in the fifth wave of decline. At present, we cannot judge that the fifth wave of decline has ended, because although BTC is close to the previous low, the price has not hit a new low, so we cannot be sure that the fifth wave has been completed.
Although the decline here is not smooth at present, we still maintain yesterday's view that the short- and medium-term market may continue to be volatile.
The only thing to pay attention to here over the weekend is that Bitcoin has a 12-hour low warning signal, but Ethereum does not. If Bitcoin continues to fluctuate instead of falling, then the probability of this low forming is still quite high.
If a formation signal appears, it may lead to an interruption of the decline and a short-term rebound. Whether it can lead BTC back to the trend, we will make a judgment based on the strength of the rebound at that time.
In the short term, the upper trend pressure level of Bitcoin has been adjusted to 27300-500, and the lower support is near the new low of 25800. After breaking through, we will continue to look at yesterday's target; the upper trend pressure level of Ethereum is at 1830-50, and the lower short-term support is around 1740-50.
