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In the Crypto Assets market, Bitcoin has recently shown a significant downward trend. Technical Analysis indicates that the price on the hourly chart has fallen below the middle band of the Bollinger Bands, the MACD indicator shows a death cross pattern, and the histogram has dropped below the zero axis, all of which are strong bearish signals. The Candlestick Chart is primarily composed of Bearish lines, although there are sporadic Rebounds, the strength is insufficient to change the overall trend.
In the current market environment, investors should act cautiously and avoid blind bottom fishing. For experienced traders, it may be worth considering establishing short positions at high levels. However, regardless of the strategy adopted, risk management should always be the primary consideration. It is recommended to closely monitor the resistance levels in the range of 112700-113200. If this range is broken, it may further decline to around 110000.
Ethereum (ETH) is also facing downward pressure, with the 4280-4300 range likely to become a key resistance level. A breakout may test the 4150 level.
It is important to note that the crypto assets market is ever-changing, and investors need to remain calm and rational to avoid emotional decisions. Market fluctuations often contain opportunities, but they also come with risks. Successful traders understand how to go with the trend, rather than against it.
Despite the short-term downward trend in the market, the cryptocurrency industry remains vibrant and full of potential in the long run. Just like there are no towering trees that grow overnight in nature, there is no instant success in the financial markets. Investors need to maintain patience, continuously learn, and adjust their strategies to stand firm in this challenging market.
Finally, investors are reminded to always pay attention to market dynamics, including but not limited to changes in regulatory policies, institutional investment trends, and other factors, all of which can have a significant impact on the market. In a volatile market, maintaining clarity and rationality is more important than blindly chasing gains and selling at losses.