On the second day of the New Year, Bitcoin begins to gain momentum, interpretation of the cryptocurrency market!
Bitcoin has been oscillating and correcting for so many days, and finally it is about to gain momentum. There is a feeling that it has almost entered the end of the oscillation, and a new trend may emerge in the coming week!
On the daily chart, bulls are starting to gain momentum, and the retracement low is rising. Now, it depends on whether the rebound high can break through, which will also follow the rising tide. The 4-hour Bollinger Bands are widening, and the price is testing the upper resistance. Both the middle and upper bands are opening upwards. The resistance above is at 96,000; we need to see if it can hold. If it cannot hold, this will present an opportunity for a short position. Conversely, if it holds, we will need to test the 100,000 mark, so for short positions, around 96,000 is worth a try.
Bitcoin has retraced about 15% from its high, while Ethereum has retraced more significantly at 25%. From the nature of the market, Bitcoin is undergoing a typical correction, while Ethereum appears to be undergoing a washout. In December, the cumulative net inflow into the U.S. Ethereum spot ETF exceeded $2.1 billion, nearly double that of November, setting a new historical high.
The monthly bottom of the exchange rate between Bitcoin and Ethereum has already been revealed, and the siphoning effect pattern of Bitcoin will be broken. A new round of market explosion for Ethereum is not far away. From a long-term trend perspective, all short-term fluctuations will ultimately be smoothed out. Do not base your confidence on short-term price performance, as it is difficult to enjoy the dividends of long-term growth. Insisting on a long-term perspective and downplaying short-term fluctuations is the key to achieving steady growth.
The spot premium index also shows signs of stabilizing and bottoming out. Compared to the level before the U.S. stock market opened on Monday, the price has slightly decreased, but the premium has increased somewhat;
This indicates that among the forces driving the price decline, the proportion of futures has started to increase, while among the forces driving the price rebound, the proportion of spot buying has also increased;
Therefore, this phenomenon is good news for bulls!
Generally speaking, under these conditions, either a rebound will occur to confirm a false breakdown of the consolidation, or the last wave of accelerated decline will emerge, followed by the confirmation of the end of the correction.
