1. BTC rebounds to a short-term high
The daily K line chart of BTC shows that BTC prices have shown clear signs of recovery recently. On October 25 and 26, they rose by 3.8% and 3.4% respectively. The price market performance is relatively balanced and has reached the highest level since September 14. Therefore, it is of great benefit to the release of short-term pressure. During the period of price recovery, the daily trading volume of BTC effectively increased, further promoting the price to be better. ETH and other mainstream currencies rose with the rebound of BTC, and the market performance was relatively strong.
2. A large number of short positions of BTC
Due to the frequent horizontal adjustment of BTC in the early stage, the short contract positions were largely concentrated in the price range of $21000 to $19000. Therefore, even if BTC's short-term rise is not high, it still causes a large number of short positions to explode. In terms of the absolute value of short positions, 16143 and 15983 BTCs were blown out on October 25 and 26, respectively, with a value of 320 million dollars and 319 million dollars calculated at 20000 dollars. In terms of absolute position bursting, it has reached the highest value since December 2020. Therefore, the basis for BTC's strong short-term performance still exists.
3. ETH performs best in a month
The bottom characteristics of ETH prices have been strengthening since two consecutive trading days. In terms of trading volume, the volume was increased on October 25 and 26 for two consecutive trading days, which is very effective for price coordination. Therefore, in judging the growth expectation, we can judge the low absorption opportunities according to the bottom pattern since September 16. In the vicinity of $1500, the ETH price will remain strong when the support is effective, and further increase can focus on the breakthrough performance after selling pressure and digestion.
4. ETH long short ratio rebounds obviously
The recent price rebound of ETH has been synchronized with the counter attack of contract bulls, especially during the rally of contract long short ratio, which has verified the typical bullish signal. On October 23 and 25, the long short ratio rose to the high of 1.129 and 1.092. That is to say, the counter attack of the contract bulls was relatively ahead. As early as October 23, the long short ratio had reached the highest value since January 26, 2020. Therefore, ETH may maintain a strong momentum in the short term after the strength of its bulls has increased explosively recently.
5. DOGE short-term counter attack
After the short-term surge of DOGE, the 4-hour K chart shows that the price has continued to show very obvious signs of callback. The short-term recovery of trading volume in the same period means that the selling pressure has been released relatively fully. More investors sell DOGE in the price range of 0.74 to 0.83.
On the news side, after Musk became the leader of Twitter recently, the discussion about the use of DOGE for payment also heated up again. Before that, Musk had proposed the idea of opening Twitter to accept payment with dog currency. In April this year, he tweeted, "Maybe you can choose to pay with dog currency?", Matt Wallace, a dog coin supporter who had more than 630000 Twitter followers at that time, immediately agreed and replied, "Dog coin is sprayed on the moon.".
In the short term, DOGE rebounded with the BTC price, and the transaction heat increased significantly. Next, we can focus on the support effect above US $0.7.
