Market analysis: The view remains unchanged, and risk avoidance is the main focus

Let me briefly talk about my views on the market outlook. The current market is in a stage of horizontal fluctuations. It is hard to say how long the fluctuations will last, but one thing is certain: there will be another obvious decline in the end. Overall, the world economy has encountered an unprecedented crisis, and the government’s attitude towards cryptocurrencies is worrying. The investment enthusiasm of the entire market is declining. You can also go to the communities of various project parties to find out how many active users there are now. I personally think that there will not be many opportunities before the next BTC production cut. The market trend will continue to decline until the sentiment of all investors drops to freezing point and a large number of project parties shut down their projects, and then there will be a real rebound. It is too early to talk about a rebound now.

BTC

BTC continues to fluctuate within the range, and the trading volume is still shrinking. I still maintain my previous view. The longer it goes sideways here, the worse it will be for the future market, because it will form a certain amount of locked-in shares, and it will be difficult to get out of this range. Now there is no trend of returning to the 5-week line. I personally believe that no matter from which aspect, the target does not have the expectation of a substantial rebound.

It is still oscillating near the lower shadow line, and the bulls and bears have not yet decided the winner, but it has already tested the support of $7,700 four times. If it tests this point again this time, it is likely to fall below the support of this point. I estimate that the next support level is around $6,800-6,900. If the target returns to the 5-week line and the 5-week line turns upward, the bearish conclusion is not valid. At present, we should pay attention to the gains and losses of the 30-day line. If it stands above the 30-day line, it may test again whether the high of $8,780 can be broken through. If not, the previous downward trend will be maintained.

ETH

ETH is still hovering around the 5-week line. The weekly moving average system basically presents a short arrangement. The unstable trend of BTC also restricts the influx of super-bottom plates, which is basically consistent with the previous judgment. The current trading volume cannot continue to support a substantial rebound of the target. At present, the possibility of an independent trend for the target is low, and it is likely to follow the market. Even if the target wants to move independently, it needs to fluctuate sideways at this place to repair the moving average indicator. I personally think that the pullback against the negative line on September 24 has basically ended, and we will continue to look for bottom support. Moreover, I personally have a relatively empty view on the target. I think the target may set a new low. I suggest that you pay more attention to BTC and platform coins. One is popular and the other has potential performance support. Of course, this is just my personal opinion. Pay attention to risks.

The author’s views are for learning and communication only, are not intended as investment recommendations, and do not constitute an investment basis!