Bitcoin and Ethereum Await Support to Rebound After Market Shakeout

The analysts observed that recent events have demonstrated the occurrence of a black swan, leading to Bitcoin dropping to volume levels that are considered critical for future upward movement. Previously, trading signals for shorts on monthly charts for Bitcoin and Ethereum indicated targets of $92,000 and $1,800, respectively. However, these targets were contingent upon reaching $112,000–$115,000 for Bitcoin and $2,900–$3,000 for Ethereum to justify the all-in short positions. Currently, the market has slightly dropped short of these targets, leaving the trader without positions and feeling disappointed. The Ethereum short signal at $2,866 was missed due to waiting for the higher target, and a similar situation occurred with Bitcoin at $110,200. The trader now feels overwhelmed by the missed opportunity to take a long-term short position after a month of anticipation. The market appears to be on a major support level, with the recent dump liquidating approximately $1 billion in longs and sharply reducing open interest. Many anticipate a rally toward $112,000–$115,000, and it is likely that stop-loss orders for longs were triggered during this dump, especially as some news stories aimed to scare traders into capitulation, already familiar to the community. The withdrawal of stop-losses and the clearing of longs suggests a potential return to the previous accumulation zone. Currently, the market did not generate shorts above the top or close longs at optimal levels, instead dropping cautiously before anticipated levels, amid news-driven fear campaigns. Given these conditions, the trader advocates for patience, waiting for the market to retest the accumulated levels. A key signal to watch is the trading volume — losing volume could indicate the start of a downward correction aligning with the earlier posted analysis. Until then, the strategy is to wait for a return to the average trade level, remaining cautious about chasing false breakouts or succumbing to fear-driven movements.