The current cryptocurrency market has experienced a violent recovery, with BTC jumping over 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 a 4-hour volume-driven bullish candlestick, 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: The downward channel has collectively broken, confirming a short squeeze reversal.
The previous short-term downward channel has been completely broken by this volume-driven rally, with both coins' highs no longer declining, aided by short covering that facilitated a rapid ascent.
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 simultaneously, 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 rally: previously, the funding rates for both coins were negative for three consecutive days, and open interest remained high, indicating overcrowded shorts. Once buying interest was triggered, it caused a chain of liquidations and a chain reaction of price surges, instantly boosting bullish momentum.
2. Capital aspect: New funds entering, sentiment for both coins turning fully bullish.
Note that ETF fund data is disclosed with T+1 delay; yesterday’s outflow data does not reflect real-time market movements today. Institutions can fully execute bottom-fishing strategies during trading hours, with net inflow 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, and market sentiment for both coins has rapidly shifted from bearish to bullish, with funding rates also turning positive.
3. News aspect: Marginal easing of geopolitical expectations, gradual digestion of negative news.
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 tax season selling pressure that suppressed the market has been gradually digested, and the Fed’s hawkish expectations have long been fully 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 batches on pullbacks to 75,200-75,800
Stop-loss: 74,800
Target levels:
First target: 77,000
Second target: 77,500
ETH
Entry zone: Buy in batches on pullbacks to 2,280-2,300
Stop-loss: 2,260
Target levels:
First target: 2,340
Second target: 2,380