December 21, Saturday, Bit Dingdong's Morning Analysis:
The market may currently be in a short-term adjustment phase, with the price of Bitcoin showing a significant downward trend on December 21, and the degree of decline is considerable. This has broken the relatively stable price range observed earlier, indicating that the short-term trend of the market has shifted from stable or upward to downward. Looking at a longer time frame, the price of Bitcoin is expected to show a significant upward trend overall in 2024, but the downward movement on December 21 has introduced considerable uncertainty into its price trajectory, necessitating further observation to see if it will continue to decline, thereby altering the medium-term upward trend.
Indicators such as MACD may have indicated that Bitcoin was in a bullish market or that the trend was unclear prior to December 21, but with the significant downward movement in price and the change in trend on that day, the DIF line of the MACD indicator will quickly cross below the DEA line, forming a death cross. Meanwhile, the MACD histogram will also turn from positive to negative, further confirming the short-term downward trend of the market. The Relative Strength Index (RSI) will drop quickly into the oversold area after the significant price decline, which may suggest that there is some rebound demand in the short term; however, in the absence of a change in the overall downward trend, this rebound may be relatively weak.