To Li: BTC/ETH market review for the second week of October

Bull markets are born in despair, grow in hesitation, and end in euphoria. This week, Bitcoin and Ethereum experienced a cliff-like drop. At the beginning of the week, Bitcoin and Ethereum began a stepwise decline from the heights of 126208.5 and 4754, consecutively losing key support levels. The downward trend suddenly accelerated mid-week, showing a near-vertical waterfall-like plunge, which briefly broke through the market's defenses, hitting a low of 101516.5 and 3400. Fortunately, the bearish momentum temporarily exhausted by the weekend, leading to a counterattack from the depths, and the price has now struggled back up to the level of 112200 and 4000. Despite the market being bruised this week, the weekend rebound has brought a glimmer of warmth for the upcoming week.

Combining the signals from the market, there is currently no clear direction released, and it is highly likely that there will be a maintenance of small range fluctuations in the short term. We need to wait for a breakthrough market trend to break the existing balance. The technical aspect has clearly shown a bearish dominant pattern, making it difficult for long-term layouts to achieve considerable returns. From a strategic perspective, it is recommended to follow the market trend, primarily focusing on short-term operations, and by flexibly adjusting positions, better fit the current market's fluctuation rhythm, thereby reducing the risks of long-term holdings.