Bitcoin & Ethereum Analysis After Testing $25,000

The Bitcoin market is under pressure due to news of FTX asset disposal, and the flagship cryptocurrency has indeed tested the critical support level of $25,000.

However, it appears precarious at this level, and next Wednesday brings the CPI data release, along with the potential approval of FTX's asset sale plan.

Friday also marks the well-known "quadruple witching day" (referring to the expiration and settlement of derivative financial instruments on the third Friday of the third month of each quarter in the U.S. market), which is expected to bring increased volatility in commodities.

This week, significant volatility is emerging in the cryptocurrency markets.

If Bitcoin manages a short-term strong breakout above $25,000, then the key support to watch will be around $23,800. It's worth noting that the previously criticized weekly bearish divergence for Bitcoin is about to resolve.

Currently, I hold two views:

View 1: Bitcoin falls below $25,000, makes a false breakout downward to around $23,800, or even in extreme cases, around $22,000. Then, it only needs to close back above $25,000 at the end of the month to complete the weekly-level false breakout downward.

View 2: Bitcoin remains above $25,000 for this week. After all news events settle, it can initiate an oscillatory rebound.

The future market narrative might be led by Ethereum Cancun upgrade.

Ethereum

Ethereum has continued its weakness, breaking below $1,550 intraday, with strong support around the $1,460 area below.

If Bitcoin successfully breaks lower, the next downside target is between $1,300 and $1,350.

After this adjustment, the market is gearing up for a weekly rebound with the Cancun upgrade as the main narrative.