Market Overview
Yesterday, the cryptocurrency market experienced a notable rebound following the Federal Reserve's暗示 of potential intervention in the bond market. Key developments included:
- 10-year Treasury yields dropped 15 basis points to 4.09%.
- Weak U.S. housing data and declining consumer confidence contributed to a weaker dollar, boosting crypto assets.
- Ethereum surged ~10%, while Bitcoin reclaimed the $20,000 level.
- Traditional markets (Dow Jones, Nasdaq, S&P 500) also posted gains for a third consecutive day.
Bitcoin (BTC) Technical Analysis – October 26
Daily Chart Perspective
- Price remains within a one-month consolidation range near the bottom.
- Resistance at $20,500 – a breakout above this level could signal a sustained bullish reversal.
4-Hour Chart Insights
- European session saw a dip to weekly lows followed by steady gains.
- U.S. session accelerated the rally, with BTC firmly holding above $20,000.
- Increased trading volume and volatility indicate stronger market participation.
Key Levels to Watch
- Support: $20,000 (psychological level)
- Resistance: $20,500–$20,800
Trading Strategy
- Long: Buy near $19,900–$20,000, stop-loss at $19,700**, target **$20,500–$20,800.
- Short: Sell near $20,700–$20,800, stop-loss at $21,100**, target **$20,000–$19,800.
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Ethereum (ETH) Technical Analysis – October 26
Daily Chart Highlights
- ETH outperformed with a strong bullish candle, breaking out of its consolidation range.
- Critical support-turned-resistance at $1,420 now acts as a new floor.
- Next targets: $1,550–$1,600.
4-Hour Chart Observations
- Rally initiated during the European session gained momentum in U.S. hours.
- ETH surpassed $1,500 amid declining Treasury yields and dollar weakness.
Key Levels
- Support: $1,450 (Asian session low)
- Resistance: $1,550
Trading Strategy
- Long Only: Buy dips at $1,440–$1,460, stop-loss at $1,420**, target **$1,530–$1,550.
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Pro Trading Psychology
"Markets (BTC, ETH) are simple; it’s traders who complicate them."
Stick to your plan, manage emotions, and trade systematically.
FAQ Section
Q1: Why did BTC and ETH surge suddenly?
A: The rally was driven by macroeconomic factors: Fed policy hints, weaker dollar, and favorable bond yield movements.
Q2: Is $20,500 a reliable resistance for BTC?
A: Yes, it’s a tested level. A daily close above it could confirm further upside.
Q3: How strong is ETH’s breakout?
A: ETH’s close above $1,420 with high volume suggests a valid breakout. Watch for follow-through buying.
Q4: Should I adjust my stop-loss during high volatility?
A: Tighten stops only if price approaches key support/resistance. Avoid reactive adjustments.
Q5: What’s the biggest trading mistake now?
A: Overtrading due to FOMO. Stick to predefined entry/exit zones.
Q6: How long might this rally last?
A: Depends on macroeconomic data. Monitor Fed statements and U.S. economic indicators closely.