[Market Analysis on October 29] BTC fell back to US$112,000, ETH fell below the US$4,000 mark, and the SocialFi sector only rose amid the general market decline

⚡️ Quick overview of core ideas

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  Mainstream currencies have generally corrected: Bitcoin (BTC) fell back to around $112,000, and Ethereum (ETH) fell below the key psychological level of $4,000.
  
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  Market sentiment is cautious: investors tend to wait and see before the Federal Reserve's FOMC meeting decision, and most crypto sectors fell.
  
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  Sector performance was significantly differentiated: SocialFi became the only rising sector today, and other major sectors such as Layer1, Layer2, DeFi, etc. all recorded declines.
  
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  Long positions in the derivatives market were liquidated: In the past 24 hours, the amount of liquidated positions across the entire network reached 553 million US dollars, of which 397 million US dollars were liquidated by long positions, accounting for more than 70%.
  

📊 List of core assets and sector data

🔍In-depth technical analysis

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  Prices were volatile ahead of the FOMC meeting. Analysts noted that BTC failed to follow its historical pattern of typically falling before major U.S. economic events.
  
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  In terms of key technical levels, $111,000 (CME gap) and $110,000 are the lower supports that the market is paying attention to. A break below these levels could lead to a further test of $106,000.
  

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  The price failed to effectively break through the key resistance zone of $4,254–$4,395, which coincides with the key supply cluster (approximately 1.34 million ETH) of $4,283–$4,326, resulting in heavy selling pressure.
  
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  Currently, ETH is still consolidating within a symmetrical triangle pattern. It needs to effectively break through the upper rail of the triangle and stand firmly above $4,254 to open up space for the challenge of $4,395.
  

🌌 Market sentiment and capital trends

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  The Federal Reserve's FOMC meeting announced an interest rate resolution today. The market generally expected an interest rate cut of 25 basis points. Investors were operating conservatively before the resolution.
  

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  Ethereum demand pause: ETH’s holder accumulation ratio (a measure of address accumulation/deduction) fell from 31,278 to 30,964, about 1%. At the same time, the scale of net outflows from exchanges shrank by about 43% between October 15 and 27, indicating that the pace of accumulation has slowed down or the willingness to sell in the short term has increased.
  
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  ETF funding provides support: Bitcoin and Ethereum spot ETFs continue to attract capital inflows despite market corrections. In the past month, Bitcoin spot ETFs have seen inflows of US$4.7 billion, and Ethereum spot ETFs have also recorded inflows of US$983 million.
  

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  Market funds show a sector rotation effect. In addition to the slight rise in the SocialFi sector, some tokens in the Meme sector such as MemeCore (M) and OFFICIAL TRUMP (TRUMP) also bucked the trend and rose.
  

🎯 Operation strategy suggestions

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  For short-term traders:
  
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  Key position operations: You can pay attention to the support reaction of BTC around $111,000 and ETH around $3,900–$3,950. If it stabilizes, you can try to go long with a short position and strictly set a stop loss.
  
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  Pay attention to strong sectors: You can focus on short-term opportunities in resilient sectors such as SocialFi, but you need to be wary of volatility risks.
  
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  For medium and long-term investors:
  
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  Layout in batches on dips: If the market experiences further correction due to the FOMC decision or other factors, the price below $110,000 (BTC) and $3,800 (ETH) can be regarded as the reference layout range.
  
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  Pay attention to the breakthrough signal: If ETH can effectively break through and stand above $4,254, it can be regarded as a positive signal of technical strengthening.
  
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  Key points of risk control:
  
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  It is recommended to control the total position at 50%-60% and retain sufficient cash.
  
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  Be sure to set a stop loss to avoid significant losses in volatile markets.
  

⚠️ Risk warning

1. 
   FOMC resolution risk: If the Federal Reserve’s interest rate decision and Chairman Powell’s speech deviate from market expectations, it may trigger severe market fluctuations.
   
2. 
   Technical breakdown risk: If BTC effectively falls below $110,000 and ETH cannot hold support near $3,900, it may trigger a deeper correction.
   
3. 
   High-leverage liquidation risk: Market volatility intensifies, and high-leverage positions are easily liquidated.
   

💎 Summary

Disclaimer: All the above analyzes are just for sharing personal market views and do not constitute any investment advice. The cryptocurrency market is extremely risky. Please invest rationally, make independent decisions, and be responsible for your assets.