Binance co-founder and former CEO Changpeng Zhao (CZ) has issued a warning to the cryptocurrency market. Given the current situation with Bitcoin (BTC) and Ethereum (ETH) hovering near short-term lows, he believes further declines are possible.
Zhao recently emphasized a sobering perspective for investors through his X (formerly Twitter) account, saying, "The market has always had numerous downside swings." He added that even if the long-term uptrend continues, investors should be prepared for short-term price volatility. Currently, Bitcoin is trading between approximately $109,000 and $110,000, closely following its 200-day moving average. While this level is considered strong market support, recent multiple retracements suggest that buying pressure is gradually weakening.
Technical analysis suggests that if Bitcoin fails to break above the $114,000 resistance level for the time being, it could fall to $106,000 or $102,000. The RSI (Relative Strength Index) remains near the neutral level of 45, suggesting that it has not yet reached oversold levels, suggesting that investors hoping for a rebound after a short-term decline may not be able to achieve their expectations.
Ethereum is also showing a similar trend. The current price is below $4,000 (approximately 5.36 million won), indicating fatigue from the upward trend that has continued since the beginning of the year. In particular, it has repeatedly encountered resistance at the 100-day moving average and is currently moving sideways at the $3,600 (approximately 4.83 million won) support level. If this level breaks, there are predictions that it could fall to the strong support level between $3,400 (approximately 4.55 million won) and $3,200 (approximately 4.29 million won). Conversely, a reexpansion above $4,200 (approximately 5.63 million won) could signal a bullish trend, but analysis suggests that this is unlikely given the current technical trend.
Zhao's warning is less a simple pessimism and more a realistic view of the market's structural characteristics. He emphasized that "a bear market rarely transitions directly into a bull market," and that repeated adjustments, such as removing leverage and shedding "weak hands," are prerequisites for a healthy rebound. Indeed, with both Bitcoin and Ethereum entering a phase of testing key support levels, the argument that another downtrend is still possible is gaining traction.
Both recent market sentiment and technical trends suggest that we must be wary of short-term volatility. While this may present opportunities for long-term investors, it also places greater emphasis on risk management for those seeking short-term trading opportunities.
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