Market Overview
The cryptocurrency market faced significant turbulence following the FTX liquidity crisis. Major exchanges have announced plans to release Merkle tree reserve certificates to mitigate risks akin to a "Lehman moment" for the crypto space. After Binance abandoned its acquisition deal with FTX, cryptocurrencies extended their sharp decline.
Key developments:
- Bitcoin plunged below $16,000 this morning, hitting its lowest level since November 2020
- Total crypto market capitalization dropped to $840 billion, a multi-year low
- Ethereum tumbled over 15%, reaching $1,071 at its lowest point
- Asian market opening brought mild recovery, with BTC reclaiming $16,000
- U.S. stocks closed sharply lower amid uncertain midterm election results
Bitcoin (BTC) Technical Analysis
Daily Chart Perspective
- Sustained bearish momentum with consecutive lower lows
- Strong overhead resistance suggests continuation of downtrend
- Next potential support zones: $14,000-$13,000
- Tonight's CPI data likely to reinforce bearish sentiment
Short-Term Trading Strategy (4H Chart)
- Entry Zone: $17,200-$17,300
- Stop Loss: $17,600
- Targets: $16,200-$15,900
- Approach: Favor short positions during pullbacks, avoid premature long entries
Ethereum (ETH) Technical Analysis
Daily Chart Perspective
- Breakdown below critical $1,250 support confirmed
- Bearish structure intact with no significant reversal signals
- Expect continuation after corrective rebounds
Short-Term Trading Strategy (4H Chart)
- Entry Zone: $1,240-$1,250 (previous support turned resistance)
- Stop Loss: $1,280
- Targets: $1,140-$1,110
- Key Watch: Evening CPI data impact on price action
Risk Management Principles
- Maintain disciplined position sizing
- Always use stop-loss orders
- Avoid emotional trading during volatility
- Focus on high-probability setups only
👉 Secure your crypto portfolio today
FAQ Section
Q: Is this a good time to buy Bitcoin?
A: Current market conditions favor cautious approaches. Wait for confirmed reversal signals before considering long-term positions.
Q: How will CPI data affect crypto prices?
A: Higher-than-expected inflation could trigger further selloffs, while softer numbers may bring temporary relief.
Q: What's the safest strategy in this market?
A: Dollar-cost averaging (DCA) for long-term holders, while short-term traders should focus on risk-defined opportunities.
Q: When might Ethereum recover?
A: ETH needs to reclaim $1,300 convincingly to suggest potential trend change. Monitor on-chain activity for clues.
Q: Are altcoins riskier than BTC now?
A: Yes, altcoins typically show higher beta (volatility) during market downturns. BTC often leads recovery phases.
Disclaimer: This analysis represents market observations only, not financial advice. Cryptocurrency trading involves substantial risk.
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