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After a night of coding, I took a moment to check on the trends in the encryption currency market before falling asleep.
Bitcoin is currently hovering near a key support level, and the market's risk aversion sentiment only started to show today, but the nighttime market has already been so severe. We need to closely monitor the upcoming rebound situation. If it falls below the key support level, I personally do not recommend rushing to buy the dip, as it is very likely to give up halfway through the decline.
If there is a situation where the support is broken during my sleep, investors who want to enter the market should at least wait for a bullish engulfing pattern to appear on the 1-hour candlestick chart. A more conservative approach is to wait for the bullish engulfing pattern to appear after the 4-hour candlestick closes before entering the market, which allows setting the stop-loss at a position 0.3-0.5% below the previous low.
In terms of Ethereum, as long as the support at $4150 is not broken, we do not need to worry too much about a pullback. Currently, it shows a typical consolidation pattern, seemingly waiting for Bitcoin's movement to determine the direction.
The situation with Solana is similar to Bitcoin, hovering around the key range of $174-$174.5. This position requires special attention; if it breaks down and then rebounds, observe at most two 4-hour candlesticks. If it cannot recover above the key level, the market may experience significant changes.
In short, by noon at the latest, the market will either break through the current key position or fall below support. The possibility of consolidation is low near these sensitive positions.
Whether it breaks below or breaks through key levels, if you are unwilling to exit the market immediately, remember to appropriately reduce your position. Absolutely do not go all in with high leverage to resist market movements, because no one can accurately predict the limits of prices. In this uncertain market, it is essential to maintain a cautious and flexible attitude.