3.5 Midday Market Analysis

Bitcoin's recent surge has been quite strong, rising nearly 8,000 points from lows. The bears have been largely wiped out above, and currently, the market is the most frustrating: everyone is afraid of a sudden plunge when chasing longs, and afraid of missing out when shorting, caught in a dilemma. Remember one thing: in the short term, don’t hold on stubbornly; small positions with quick entries and exits are the safest.

Bitcoin broke through the price channel. To continue upward, it must stabilize above the previous high, and after breaking through, it can target around 75,000; a key support at 71,850 must hold on a pullback. If it stays above, there’s still a chance for a rally. Once it falls below, it will return to a consolidation zone, and the correction will officially begin.

After such a strong short-term rally, the hourly chart has already shown signs of a top. A technical pullback is normal; a drop of two or three thousand points is entirely reasonable. Currently, the market is oscillating near a key bullish candle. As long as it doesn’t break below this candle’s low, it won’t fall too deep. If it breaks the channel support, the correction will be smoother, with targets at 70,966 and 70,178. If it breaks below 70,000, look at 68,936.

$BTC Operation: Volume breakout and stabilize at 72,750, look for a rebound to chase longs; volume break below 72,358 and fail to recover, go short directly, with strict stop-loss. If the hourly chart stabilizes above 72,750, target 73,671 and 74,850; only if it breaks above these levels is it meaningful. If it breaks below 72,230 on the 4-hour chart, target 71,055 and 70,099. Resistance levels are 72,750, 73,671, 74,850; support levels are 71,938, 70,178, 69,385.

Looking at the second coin, it follows Bitcoin’s trend. After breaking out of the range, to maintain a healthy trend, it needs to retest the upper boundary of the range to confirm support. Forcing a breakout without this is unstable; if it falls back into the range, a correction begins.

$ETH Operation: Volume breakout above 2,132 to chase longs, stop-loss if it falls below; volume break below 2,111 to short. If it retests and stabilizes at 2,035, consider going long; stop-loss if it falls below 2,000. Light short at 2,214, stop-loss if it breaks 2,252; place a buy order at 1,958, stop-loss if it falls below 1,911.

On the hourly chart, if it breaks 2,132, target 2,178 and 2,214; on the 4-hour chart, if it breaks below 2,120, target 2,063 and 2,005. Resistance levels are 2,132, 2,178, 2,214; support levels are 2,111, 2,065, 2,031.

Overall, the market is oscillating with a bullish bias but needs a correction.