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In case of extreme market conditions, where will the next bottom for Bitcoin and Ethereum be?
Currently, there is no sign of a rebound in the market. On January 14th, Bitcoin surged close to 98,000, causing FOMO for many who missed the chance to buy in.
Last week, those who were afraid of shorting, and those who bought low and pushed up to 98,000, were all expecting a rebound to add positions or to roll over their positions on the rebound.
Everyone's outlook is the same, so naturally there is no significant rebound strength.
The next dense trading zone for Bitcoin is around the weekly support at 85,500.
For Ethereum, it is around 2,800.
My idea is that for those wanting to go long, it’s better to avoid this dense trading zone, allowing the bulls and bears to fight it out there for a while. If you want to go long, it’s best to wait. Both right-side trading and avoiding a break below the market lows—Bitcoin at 80,000 and Ethereum at 2,600—are advisable.
The vacuum zones below are quite large!
Referring to the Fibonacci extension on the daily chart, in extreme conditions, the first extension for Bitcoin is around 73,000, and for Ethereum around 2,310.
Be aware of the upcoming Federal Reserve interest rate meeting at the end of the month, and the dual bearish news of the US tariff policy implementation on February 1st, which are already reflected in the market.
In other words, when the bearish news is officially announced at the end of the month, it might be a good opportunity to boldly buy low. Refer to around 73,000 for Bitcoin and 2,310 for Ethereum.