12.20 Perspective

After the large Bitcoin (大饼) broke below the 100k mark, everyone should have realized that the market has changed, right? The initial judgment signals for a downward trend have been issued. After a midnight plunge, this is the first verification of the Bitcoin bottom. The 1-hour chart has successfully broken below the daily life line, and the 4-hour chart currently shows signs of breaking below the bullish continuation. The current daily line is weak, and the subsequent rebound strength is weakening (the daily line cannot recover the lower shadow back into the daily middle track and above the life line of 101100 before this weekend); therefore, market sentiment is about to fully enter a correction phase.

Looking steadily, we can only proceed step by step in short-term trading. The 4-hour chart shows that the death cross of KDJ and MACD may create a bearish sentiment if the volume increases. The rebound strength is not enough to support the bulls above 985. If the 4-hour chart breaks below 957 again today, which is below the lower track, then this wave of bearish continuation will accelerate.

Additionally, the 1-hour indicators currently show no signs of a rebound. The high structure is gently downward, indicating that prices will move slowly upwards in a volatile manner, but the cryptocurrency price is pressing against the Bollinger lower track. The bearish sentiment is strengthening; according to the gap, the Bollinger lower track will become the subsequent low point.

The forecast is that after a lack of upward momentum, Bitcoin will continue to refresh the low points. If the rebound is not significant, today will still focus on corrections. The first support for the low point is around 957; if prices fall below this level again, it will likely lead to a significant drop towards the vicinity of 936. Let's observe whether the first support can hold up. For the wave, we will first look around 964 and proceed step by step; there will surely be a way when we reach the mountain.

The first resistance for the high point is around 985. If this level is broken, the 1-hour chart will start to rebound, and standing above 100000 will mean it was just a false alarm. At that point, we will watch the rebound performance explode.

Wave reference

Looking for a rebound in the morning

Around 966-957 as a target, aiming for a breakthrough at 985, then keeping a base to see 100000. If 985 does not break, we will shift to look below at 936.

If it's just a consolidation, pressure and support can be lightly entered, around 983-966.