The situation in the Middle East has not yet continued to deteriorate temporarily. Although there is still some tension between the United States and Iran, some signals released recently have already eased compared with the past few days. What the market is most worried about right now is that the situation could upgrade again. If a new military conflict breaks out, safe-haven assets such as gold and crude oil will most likely react first. The crypto market and U.S. stocks are also inevitably affected, so this area still needs continuous monitoring.

As for the Federal Reserve:
The latest published Beige Book shows that the U.S. economy is still maintaining moderate growth, with no obvious deterioration in employment and consumption. This means that in the short term, the Fed will most likely continue to observe the data and will not rush to adjust policy. Trump has also publicly called again recently, hoping the Fed can cut interest rates sooner, but ultimately it still depends on how the subsequent inflation and employment data perform.

Asia market also had an unexpected development yesterday afternoon. The Bank of Korea announced a rate hike, exceeding many market expectations. After the opening of the Japan and South Korea stock markets, they were both affected to some extent, which also shows that global capital is still quite sensitive to each country’s monetary policy.

Now let’s look at the crypto market:
At present, Bitcoin is still trading in a range around $65,000. While there has not been a breakout with heavy volume, the overall trend has been much more stable than a few days ago. In terms of capital flows, there have also started to be some improvements. In the latest trading day, spot ETFs recorded net inflows again. However, when stretched out to the last several trading days, overall capital remains cautious, and there has not been a sustained return by institutions. Therefore, this is still in a consolidation-repair phase.

By contrast, Ethereum has been noticeably stronger recently. Many institutions and large holders are still steadily building positions in ETH, which has also helped many altcoins become more active. Market sentiment has indeed warmed up compared with the earlier period.

The three major U.S. stock indexes rose slightly last night, with overall volatility not high. Tech stocks still show some differentiation in performance, and capital remains more inclined toward leading companies with earnings support. In the short term, risk appetite has recovered somewhat, but the sentiment to chase gains is not particularly strong.

From the board view, in my view, Bitcoin still maintains a consolidation-leaning bullish structure for now. If no new major negative catalyst emerges, the broader market still has a chance to continue probing upward. So treat the market as consolidating with an upward bias; the trading approach is to enter after a pullback, focusing on day trading.

Key short-term levels to watch:

BTC: Watch resistance around $66,000. If it holds above, there is potential to open more room upward.

ETH: Watch resistance around $2,000. Its current trend is clearly stronger than the broader market, so continue to pay special attention.

SOL: Watch around $80. If it breaks out with strong volume, there may be further opportunities to surge.

Overall, market sentiment recently is already better than a few days ago. However, what truly affects the trend is still the Middle East situation, so it needs to keep being watched. $BTC