Friday market update, Bitcoin experienced significant fluctuations during the overnight trading session. The price first rose to the 108500 area, then pulled back, and after a brief rebound, it rapidly declined, breaking below the 106500 mark, currently consolidating around 105800. As for Ethereum, after touching above 2760, it weakened, breaking below 2700 to a low of 2614, and is currently slightly oscillating back to the 2630 area.

From the overall trend analysis, this sharp drop has strong characteristics of a shakeout. The daily chart has broken through the middle track, and the market seems to have the intention of forming a double top structure. However, after breaking through the middle track, it quickly stabilized and did not continue to pull back deeply.

The 4-hour timeframe has shown signs of a bottom, and after the price broke through the lower band, the technical indicators began to show signs of turning, but the rebound was not strong enough, and it may continue to remain low in the short term to digest the bearish energy released earlier. It is worth noting that the strong resistance level of 106500 has not been effectively transformed into support after being quickly broken, so there will be a key scramble around this area in the short term. At the same time, the 105500-105300 range is more actively traded and the buying is slightly dominant, and a break in this area may trigger a new round of accelerated downside.

Morning trading suggestion: Bitcoin can consider a long position near 106000, with a target of 107500; Ether can consider a long position near 2650, with a target of 2700.