#Gate广场创作者新春激励 The crypto market suddenly plunges! What’s next for Bitcoin and Ethereum?

“Weekend still peaceful and sideways, then Monday morning’s sharp drop surprises (or shocks)”—this is probably the real picture of investors in the crypto circle today. Bitcoin holding the 94,000-95,500 range and Ethereum firmly sitting at 3,300-3,350 were collectively broken during a surge of volume sell-off in the morning. Prices initially dipped then rebounded slightly, leaving many holding positions in confusion: Is this correction a buying opportunity or just a prelude to a bear market? Let’s analyze from all angles.

Macroe Environment: Bad news piling up, market panics and sells off
Cryptocurrency has never been an isolated market; macro-level movements can cause it to shake. The news from last week to the weekend was essentially a “big bag of bad news.”

First, let’s talk about the Federal Reserve “big brothers.” Last week, several officials collectively adopted a “hawkish speech mode,” crushing the previously market-expected rate cut expectations—initially, everyone was hoping for rate cuts to inject liquidity into the market, but the officials’ consistent stance of “pausing rate cuts” was like pouring cold water on a hot market.

Meanwhile, before the Fed’s news settled, Trump added fuel to the fire. Over the weekend, his speech implied that Haskett had no chance of becoming Fed Chair. The market had high hopes for Haskett, and this dashed expectation added another layer of uncertainty.

Additionally, threats of tariffs between Europe and the US heightened trade tensions, creating a cautious atmosphere globally. The crypto market itself is sensitive and fragile; with so many unstable factors, investors naturally prefer to sell first. Once selling begins, price correction is only natural.

Technical Analysis: Is the rebound trend over? Oversold conditions offer a rebound window
If macro factors are the “fuse” for the decline, then technical factors are the “accelerator.” This drop directly paused the previous rebound trend. Looking at Bitcoin, it broke below the key zone of 93,500-94,500, disrupting the previous rebound rhythm. The daily chart shows consecutive bearish candles, indicating the correction momentum is strengthening. Fortunately, when the price fell near 92,000, it found support at the middle band of the daily chart, temporarily stabilizing.

On shorter timeframes, the four-hour and one-hour MACD are still expanding, meaning bearish momentum hasn’t fully released. However, RSI has entered oversold territory—like a car slammed into the brakes, still moving forward due to inertia but needing to slow down and rebound. Therefore, a short-term bounce is likely, but don’t expect this correction to reverse the overall trend. It will probably continue downward, with the strength of the rebound being the key.

Key levels to watch: Support at 92,000 is the immediate line in the sand. If broken, the next target is the 90,000 mark, which could trigger more panic. Resistance above is at 94,000; reclaiming this level would suggest bulls still have some fight left, possibly extending the previous rebound trend. Otherwise, expect continued low-range oscillation and correction.

Ethereum follows the trend: Beware of oversold rebounds, range-bound consolidation is key
As the “second place,” Ethereum has completely followed Bitcoin’s rhythm this time. The surge of volume sell-off intensified the correction, essentially giving back much of its previous small gains. Like Bitcoin, Ethereum’s short-term indicators also entered oversold territory, offering a chance for a rebound correction. The trend behind this small rebound still needs close attention.

Support levels to watch are in the 3150-3180 range, which is a recent critical support zone. Resistance is at 3270-3330, which coincides with the previous bottom of the consolidation range. Whether Ethereum can break through this zone during a rebound will determine if it returns to its previous sideways range or continues downward to find support. In the short term, Ethereum is likely to “rebound first, then face resistance,” with the rhythm of rebound and resistance depending on key level changes.

Summary: In the battle between bulls and bears, levels are crucial
Overall, the current crypto market is caught between macro bad news and technical oversold rebounds. Hawkish statements, personnel expectations, and tariff threats cast a cautious shadow over the market, triggering the morning’s sell-off and plunge. On the technical side, Bitcoin and Ethereum have broken out of previous consolidation zones. Bearish momentum is still being released, but oversold signals leave room for short-term rebounds. The overall pattern is more of a sideways pressure, with today’s rebound more like a short-term correction rather than a trend reversal. The future direction depends heavily on key levels—Bitcoin’s support at 92,000 and resistance at 94,000, and Ethereum’s support at 3150-3180 and resistance at 3270-3330—these will directly influence the next market rhythm. The tug-of-war between bulls and bears will likely continue for some time.