Trader Chen Shu: 10.22 Midnight Bitcoin and Ethereum Market Strategy *No. 2, Short-term Rapid Decline Focus on Key Support Levels

In the analysis from the afternoon of October 21, the long position strategy at 6.82/2690 was discussed. After entering the long position, the price quickly declined, reaching a low of 6.7/2660. The drop in U.S. stocks led to a poor entry position for the long position. Currently, the market is consolidating around the 67,000 level. Please see the following analysis for operational guidance.

From the daily chart of Bitcoin, the price significantly dropped nearly 3000 points from today’s high in the evening. The price has now fallen below the MA5 daily moving average and is about to touch the MA10 (6.67). Pay attention to whether the price can hold at the 6.67 level. If it breaks below 6.67, the short-term upward trend will end. For the short term, focus on the daily MA10 moving average. On the 4-hour chart, after the evening drop below the MA30 daily moving average, the decline accelerated. Currently, the 4-hour support is at the MA60 daily moving average (6.64), and to regain an upward trend, the price needs to rise above the 4-hour MA5/10 daily moving averages.

From the daily chart of Ethereum, today the price surged to the daily MA120 moving average (2780) before pulling back to the daily MA5 moving average (2660). In the short term, it is crucial to see if it can hold the small price range of 2660-80. If it holds, there is still a chance for a downward consolidation. If it fails to hold, it will fall back into an overall adjustment. First, watch the key price range of 2660-80.

Midnight Operational Thoughts:

BTC: Light long position near 6.68, add to long at 6.63, target around 6.8. If it breaks through, reduce positions and hold. Friends who are stuck in long positions in the evening may consider adding to their positions at lower levels to average down. The stop loss for long positions can be set at the break of the 4-hour MA60 moving average.

ETH: Light long position near 2665, add to long at 2640, target in the 2700-30 range.

Note: Today, the price has fallen more than 3000 points from the high. Although there has been a continuous short-term decline, as long as it does not break below the 4-hour MA60 moving average (6.64) and the daily MA10 moving average (6.67), one can consider taking long positions on pullbacks. However, if it breaks below this line, the short-term bullish trend will temporarily end.

The daily analysis strategy has a very high win rate! Analysis is not easy, so I hope everyone can give a free follow, save, like, and comment. Thank you all, and feel free to leave comments below for discussion; I will reply to each one!

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