2024.12.20 9:24 AM BTC/ETH Market Analysis
Last night, the market experienced significant volatility, seizing 7.7 billion RMB in liquidity, with as many as 269,118 people liquidated to zero. Although the amount of funds has decreased, the number of liquidations has nearly doubled. It must be clearly stated that attempting to catch the market bottom is utterly unrealistic. As the downtrend has not yet ended and we are in a phase of gradually building positions, only a right-side rebound will be a time for profit. Investors should not fall into the erroneous thinking that buying guarantees a rise. It is important to understand that the market alternates between rises and falls; there is no one-sided market that only goes up or only goes down, hence those holding spot positions need to maintain patience.
Regarding BTC, key support levels to focus on are 95,700-95,800, 93,000, 91,800, 89,500, and the resistance level at 100,000. Currently, although BTC shows some signs of short-term rebound, there are no signals indicating a medium-term uptrend. The daily K-line is accelerating towards the bottom with all short and medium indicators in a bearish arrangement.
Now looking at ETH, its support levels are at 3,300 and 3,115, with a resistance level at 3,545. The current key level is 3,440. The bearish forces are strong at the moment, and whether it can reclaim this level today is crucial; if it cannot, it may become the starting point for a new round of decline.
Today is Friday, and the market has already experienced two consecutive days of significant declines. For those investors still immersed in the bullish sentiment from the rise between November 5 and the end of November, the current results are undoubtedly disappointing. However, this is exactly the effect that the main forces wish to achieve; only by plunging the market into absolute pessimism and despair can a large amount of panic be triggered, resulting in the cheap liquidation of weak hands and their complete removal. Such market conditions are not suitable for chasing highs; those who chase highs and are fully invested are the most passive. Investors should choose to enter the market in batches, reserving funds and patience for averaging down, and reasonably allocate positions in response to the market's rapid rises and falls. The current market sentiment is remarkably similar to that of early November when many altcoins were about to break down before the reversal, and we hope that after a violent washout from a sharp decline, a stronger rebound can be welcomed.
