Saturday Cryptocurrency Market Hotspot Tracking: Bitcoin and Ethereum's Struggles and Opportunities Under the Shadow of the US Stock Market, How to Plan for the Future!

CN
19 hours ago

Tracking real-time hotspots in the cryptocurrency market and seizing the best trading opportunities. Today is Saturday, April 5, 2025. I am Wang Yibo! Good morning, crypto friends! ☀️ Die-hard fans check in 👍 Like to make big money 🍗🍗🌹🌹

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Overnight, the U.S. stock market lost $3.25 trillion in market value, while the total market value of the cryptocurrency market increased by $5.4 billion. The three major U.S. stock indices fell sharply, with the S&P 500 index dropping 5.97%, marking the largest single-day decline since March 2020; it closed down 9.1% for the week, the largest weekly decline since March 2020. The Nasdaq fell 5.82%, down more than 20% from its all-time closing high, confirming a technical bear market. The Dow Jones Industrial Average fell 5.50%, closing more than 10% below its all-time closing high, confirming a correction phase. All three major U.S. stock indices recorded their largest two-day declines and their largest weekly percentage declines since March 2020. Previously, Trump announced a tariff plan that exceeded expectations, raising concerns about global economic growth. Federal Reserve Chairman Powell did not provide a short-term answer on how tariffs would affect monetary policy, stating, "We face a highly uncertain outlook, with rising risks of unemployment and inflation." Additionally, other stock markets in the Americas were also dragged down, with the Toronto Stock Index in Canada confirming a correction, closing down more than 10% from its all-time high set on January 30. Argentina's main stock index fell 7.4% at preliminary close. The main stock indices in Mexico and Brazil fell more than 5% and 3%, respectively.

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Traders are betting that the Federal Reserve will wait until June to start cutting interest rates. Federal Reserve Chairman Powell stated: "The unemployment rate remains low, and the labor market is not a source of inflation." Weak economic growth and rising inflation are offsetting each other, leading the Fed to maintain expectations for two rate cuts in 2025. According to CME's "FedWatch": The probability of the Fed keeping rates unchanged in May is 56.7%, down from 60.1% before the non-farm payrolls report. The probability of a 25 basis point cut is 43.3%. The probability of the Fed keeping rates unchanged until June is 0%, with a cumulative probability of a 25 basis point cut at 52.1%, a 50 basis point cut at 44.3%, and a 75 basis point cut at 3.5%.

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After experiencing a significant bearish pullback, Bitcoin has consecutively formed small bullish candles on the daily chart. This phenomenon indicates that the previously strong upward momentum has eased. Although the current price shows a slight bullish trend, it is constrained by the overall trend structure and does not exhibit clear signs of strengthening. During the intraday trading session (daytime), Bitcoin's price first experienced a rebound correction, followed by a continuation of a fluctuating recovery trend. Due to reduced market participation over the weekend, market liquidity is poor. From the 1-hour candlestick chart, the price fluctuation range is gradually narrowing, and this trend is becoming more pronounced. Notably, after the appearance of a bearish candlestick, although there have been three consecutive bullish candlestick formations, the price increase is very limited, reflecting a severe lack of rebound momentum in the current Bitcoin market. Overall, although the price range has shifted upward, to maintain a strong bullish trend, Bitcoin's price must successfully break through the key resistance level of $84,000. Judging by the current situation, Bitcoin is likely to continue fluctuating within the range in the short term, with the fluctuation range temporarily set between $81,000 and $85,000. Pay attention to the cyclical fluctuations over the weekend!

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Ethereum's price trend has generally remained in sync with Bitcoin (BTC). In recent market fluctuations, Ethereum's price surged, reaching a high of $1,828. However, it soon encountered strong resistance at that price level and fell back under pressure. It is worth noting that compared to Bitcoin, Ethereum's overall volatility is relatively smoother. During the pullback adjustment process, its rebound strength appears somewhat weak. Currently, Ethereum's price has once again started a rebound and entered a high-level consolidation phase. Analyzing the overall market structure, the $1,750 level has firmly established itself as an important support level. After multiple severe tests in the market, this level has not been effectively breached. This clearly shows that this price level has strong support in the current market environment. As the weekend approaches, the market is likely to consolidate within the existing range. Considering the overall market operation and current technical indicators, after the weekend consolidation, Ethereum's price still has ample room for further upward movement.

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If you are feeling lost—don't understand the technology, can't read the charts, don't know when to enter the market, don't know how to set stop losses, don't understand take profits, randomly increase positions, get stuck while trying to catch the bottom, can't hold onto profits, miss out on opportunities… these are common problems for retail investors. But don't worry, I can help you establish the correct trading mindset. A single profitable trade is worth more than a thousand words, and finding the right direction is better than repeatedly facing defeat. Instead of frequent operations, it's better to strike accurately, making each trade more valuable. If you need real-time guidance, you can scan the QR code at the bottom of the article to follow my public account. The market changes rapidly, and due to the timeliness of reviews, subsequent trends will be based on real-time layouts. I look forward to moving steadily forward in the market with you.

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