I reminded everyone the day before yesterday that the market might need to adjust, and as a result, Bitcoin really plummeted, with nearly 300,000 people being forcibly liquidated; it’s quite tragic!
In fact, this crash is mainly due to two reasons: one is that the Fed's interest rate cut plans for next year are not strong enough, causing the US stock market to suffer, which in turn dragged down Bitcoin; the other is that Fed Chairman Powell said they will not buy Bitcoin and do not wish to change the law.
But I think these two issues are temporary and the market will digest them after a while.
Now Bitcoin has fallen to around 97,000, so don’t panic too much because this drop is mainly due to the news, so in the short term, it might fluctuate around 100,000. If you think the price is right, you can try buying some spot in batches, buying continuously until around 80,000 is fine, but definitely avoid contracts!
BNB also fell, but it’s rebounding quite quickly now. In the short term, it might fluctuate around 700. If you are playing with spot grid quantification, you should be able to make some profit. Ethereum is doing worse, falling harder than Bitcoin with little strength for a rebound, and the funding rate has also dropped significantly. If it falls again, it might remain weak for a while. As for Dogecoin, everyone knows that when Elon doesn’t talk about it, it’s just a decoration, but no one knows when he will say something.
Overall, I think after this adjustment, Bitcoin will still fluctuate around a high level; the bull market is not over yet. However, there might be some risks in the next few days, and the real opportunities may not appear until mid to late January. So, everyone should buy some spot now, which is relatively stable, and definitely avoid contracts; it’s too frightening!
Some important news:
1. Federal Reserve Chairman Powell stated that the Fed is not allowed to hold Bitcoin and has no intention of seeking to change the law.
2. South Korean Deputy Prime Minister Choi said that the government has a positive attitude towards cryptocurrencies and has decided to postpone the introduction of a crypto tax, while formulating new regulatory policies focusing on customer protection and the legal nature of cryptocurrencies.
3. MicroStrategy co-founder Michael Saylor stated that the company will focus more on fixed income securities to raise funds for purchasing cryptocurrencies.
4. BlackRock pointed out that in the context of rising inflation, government bonds are no longer a reliable buffer against risk asset sell-offs, and investors should consider gold and Bitcoin as new diversified investment tools.
Speaking of today’s daily market analysis, from the K-line perspective, the 1-hour level is down, the 4-hour level is down, the 12-hour level is down, and the daily level is down. The intraday resistance level is 99,000, and the support level is 94,000 USD. Note that 95,000 is an important key position!!
