August 20 Cryptocurrency Morning Report: A wave of long liquidations hits, is the downward channel for Bitcoin and Ethereum opening? Pay attention to Yibo for reversal signals.

CN
4 hours ago

Good morning, crypto friends ☀️, I am Wang Yibo! Today is Wednesday, August 20, 2025. Fans, come and check in 👍, those who like will make a fortune 🍗🍗🌹🌹. In the current volatile cryptocurrency market, it is crucial to track real-time hotspots and seize the best trading opportunities. Let’s analyze the current market situation together.

【1. Macroeconomic Market Environment: The Dual Impact of U.S. Stocks and Policies】

The closing situation of U.S. stocks on Tuesday showed divergence, with the Dow Jones slightly up, the S&P 500 down 0.58%, and the Nasdaq down 1.46%. The widespread decline in tech stocks put significant pressure on the market, with Intel (INTC.O) rising against the trend by 6.97%, while Nvidia (NVDA.O) fell over 3%. The volatility in tech stocks has also affected overall market sentiment to some extent.

More noteworthy is the expectation of the Federal Reserve's policy. According to CME's "FedWatch": the probability of the Federal Reserve maintaining interest rates in September is only 13.9%, while the probability of a 25 basis point rate cut is as high as 86.1%; by October, the probability of maintaining interest rates drops to 6.5%, with a cumulative probability of a 25 basis point cut at 47.5%, and a cumulative 50 basis point cut probability also reaching 46%. This strong expectation of rate cuts has not boosted the market; instead, the cryptocurrency market has experienced a sharp decline, with Bitcoin breaking support and falling to 112712, and Ethereum dropping to a low of 4112. The contract market has also been severely impacted, with long positions facing liquidation and panic spreading in the market.

【2. Bitcoin Market Analysis: Bears Dominate, Focus on High Shorting During Rebounds】

Yesterday, the Bitcoin market continued its downward trend, touching a high of 116930 in the morning before facing pressure and falling back. The price continued to decline throughout the day, reaching a low of around 112700 at midnight, with significant volatility and cautious market sentiment.

From the current market state, Bitcoin shows a significant weakness overall. The market keeps probing new lows, clearly establishing a downward trend and sending strong bearish signals. In terms of movement, bearish forces dominate absolutely, while bulls remain suppressed. Each time the price rebounds, it seems weak and fails to form effective reversal signals, indicating that bulls lack sufficient momentum to reverse the current downward trend.

Considering various market factors, it is recommended to adopt a strategy of "shorting on rebounds," waiting for the price to rebound near important resistance levels before strategically placing short positions.

【3. Ethereum Market Analysis: Downward Trend Unchanged, Need Confirmation Signals】

Ethereum has gradually retraced from a high of 4385. Although there have been multiple attempts to rebound during the day, bearish forces have firmly dominated the market, and the overall downward trend remains unchanged, with bearish momentum continuing to exert pressure. In the midnight market, Ethereum touched a low of 4112, but fortunately, the price stabilized near this critical point.

Currently, Ethereum is in a wedge consolidation structure, with the price operating between the middle and upper bands of the Bollinger Bands, indicating a short-term bullish momentum. However, this pattern typically suggests that after the trend lines converge, there will be a breakout, and further declines towards larger support levels are expected. Based on recent market trends, a reversal in the trend requires more confirmation signals!

The current market is highly uncertain, facing complex internal and external environments in both U.S. stocks and the cryptocurrency market. In this situation, it is essential to remain rational and closely monitor changes in policies and market sentiment. Follow Yibo to grasp real-time market dynamics and seize opportunities to strategize effectively.

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If you are feeling lost—don’t understand the technology, don’t know how to read the market, unsure when to enter, don’t know how to set stop losses, don’t understand take profits, randomly increasing positions, getting stuck at the bottom, unable to hold onto profits, missing market opportunities… these are common issues for retail investors. But don’t worry, I can help you establish the correct trading mindset. A single profitable trade is worth a thousand words; repeated failures are not as good as finding the right direction. 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 steadily moving forward in the market with you.

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