On August 26, the cryptocurrency market experienced severe turbulence, with the prices of Bitcoin (BTC) and Ethereum (ETH) both showing significant falls. This wave of decline originated from the chain reaction caused by the sluggishness in the U.S. stock market, leading to a panic sentiment in the cryptocurrency market.

In terms of Bitcoin, the price has fallen below the important daily support level of $1104. Technical indicators show that the MACD dual lines on the four-hour chart have crossed below the zero line, and the trading volume has significantly shrunk, indicating a possible continued decline in the short term. Investors should closely monitor the price movement in the $1102-$1107 range; if the four-hour candlestick can close above $1107, it may temporarily halt the downward trend. However, if the downward trend continues, the next support range may be at $1063-$1072.

The fall of Ethereum is more severe, with a daily candlestick directly breaking through two important daily support levels. The trends across various time frames are all showing a downward trend. In the short term, $4387 will become a key resistance level for a rebound. Only if the four-hour candlestick closes above this level, will it be possible to reverse the current downward trend.

Currently, market sentiment is leaning towards pessimism, and investors need to remain vigilant and operate cautiously. It is advised to closely monitor market changes and set reasonable stop-loss positions to control risks. At the same time, be aware of potential oversold rebound opportunities.

In this market environment, investors should remain calm and avoid blindly following trends. By reasonably analyzing market movements and formulating investment strategies based on their own risk tolerance, they can steadily progress in the highly volatile encryption currency market.