The current cryptocurrency market has experienced a violent recovery, with BTC jumping more than 3,200 points directly from the low of 73,700, and ETH moving in sync from around 2,300, rising over 150 points. Both coins have formed four-hour volume-driven bullish candles, breaking through previous key resistance levels, indicating a clear shift in market trend.

The core logic of the current market is now clear:
1. Structural aspect: Collective breakdown of the descending channel, confirming a short squeeze reversal.
The previous short-term descending channel has been completely broken by this volume-driven rally, with both coins' highs no longer declining, aided by short covering that facilitated rapid upward movement.
On BTC, the previous strong resistance at 75k-76k was broken, turning into a support line for the bulls, with strong buying support on pullbacks; ETH also completed its breakout, with resistance at 2400 and 2450 directly pierced, moving in perfect sync with Bitcoin, showing no signs of weakening independently.
This also marks a classic short squeeze scenario: previously, both coins had three consecutive days of negative funding rates and high open interest, indicating overcrowded short positions. Once buying interest ignited, it triggered a chain of liquidations and a chain reaction of price surges, rapidly boosting bullish momentum.
2. Capital aspect: New funds entering the market, with overall bullish sentiment for both coins.
Note that ETF fund data is disclosed T+1, so yesterday’s outflow data does not reflect real-time market movements today. Institutions can fully execute bottom-fishing strategies during trading hours, with net inflows only appearing in the evening.
The volume-price relationship has also reversed: previously, volume increased during declines and decreased during rebounds; now, volume increases during rallies and decreases during pullbacks. Active buying has replaced active selling, with market sentiment for both coins quickly shifting from bearish to bullish, and funding rates turning positive accordingly.
3. News aspect: Geopolitical expectations marginally easing, negative news gradually digested.
Before the expiration of the US-Iran ceasefire, rumors circulated that both sides might renew the agreement, directly triggering a concentrated short covering of previous conflict bets, serving as the immediate catalyst for this rally.
Meanwhile, the previous pressure from tax season selling has been gradually absorbed, and the Federal Reserve’s hawkish expectations have long been priced in by the market. With no new negative news emerging, the market has room for collective recovery. $BTC $ETH
BTC
Entry zone: Buy in stages on pullbacks at 75,200-75,800
Stop-loss: 74,800
Target levels:
First target: 77,000
Second target: 77,500
ETH
Entry zone: Buy in stages on pullbacks at 2,280-2,300
Stop-loss: 2,260
Target levels:
First target: 2,340
Second target: 2,380