Bitcoin, after oscillating at a high level for more than a month, finally broke down yesterday. In this round of oscillation cycle, the most obvious feeling is the weakness of the bulls. Every breakout is inevitably accompanied by a correction, with no continuity at all. Even if the daily line rises by a big positive, it will still give up a big negative on the second day as usual, so the break is not surprising; last week, the price of the currency fell back below the 30,000 mark to test the 29,500 support line. Yesterday, it broke down and fell below the 29,000 mark in the short term. The daily line broke the bottom support in the form of a big negative line. This pattern constitutes a breakout condition. Naturally, it continues to be bearish in the short term, but as for whether the market can constitute continuity, it depends on the actual market performance. After all, the market operation during this period, especially in terms of continuity, is not stable enough. It often starts a long oscillation after a wave; technically, the next support level of the daily line is just at yesterday's low of 28,800. This position is the previous resistance conversion position. If the daily line can continue to fall below this position, the 28,000 mark will be seen in the short term.

Short-term 29400-29500 empty

Ethereum, which has been in a weak state, showed its true colors after a short-lived high of 2000 this month, and then launched a continuous weak correction. Yesterday, driven by Bitcoin, it successfully and effectively lost the 1900 mark. The rebound of the previous day could only be an adjustment before the decline; however, from the technical point of view of the daily line, the space for this round of decline has not been effectively opened. The current key support of the daily line is in the 1820-1830 area. The position has formed a double bottom support for the previous two times, and the price has rebounded based on this position. So this time, the test of retracement, whether it breaks or not is the key to determine the continuation of the decline, and it is also the watershed between the long and short positions of the daily line; back to the short-term, yesterday it rebounded twice near 1830, and the short-term resistance was converted to 1880. If the intraday rebound touches this position, you can go short above it, and if it falls below, you can rely on the 1820 daily line support to go long and look for a rebound.

Short-term 1880 short, 1820 long

Gold hit the daily resistance level of 1884 last week and then fell under pressure. The daily line experienced four consecutive negative corrections. It is defined as a correction because the gold price did not fall below the 1940 watershed. Therefore, before the daily line loses this position, the trend of this round of rise will not change. It is just that the correction in the stage needs attention. In the short term, it rebounded again yesterday and fell to the 1968 line, forming a correction with good continuity. However, this wave of four consecutive negative corrections just gave up the gains of last Tuesday. The starting point of the second round of rebound was 1946. The daily line correction will first look at this position for support. In terms of the day, there was a wave of pull-ups in the early morning of the Asian session and the price rebounded by nearly 10 US dollars, but failed to recover the losses of the US session yesterday. The strength of the European session is the key. If the overall rebound can turn positive during the day, the bulls are expected to start again. The overall outlook for the day is a rebound.

Short-term 1953-1955 long

This article is original written by me, Xiao Feng Lunbi. The above analysis is only my personal opinion and is for your reference only. Investment is risky and you should be cautious when entering the market. Please indicate the source when reprinting!