January 8, 2025 Daily Market View Analysis

Market Review and Reflection

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Recently, due to the investment in quantitative operations, I have not been able to pay attention to market trends in time. Last night's "flash crash" attracted the attention of the market, especially after Wall Street lowered its expectations for interest rate cuts in the first half of 2025, and market volatility intensified. It is worth noting that the market did not expect a rate cut in January, but the sudden release of the news at this time prompted a large-scale cleanup of high-leverage contracts in the market, especially those long positions that chased high prices. This action seems to have consciously selected long contracts, resulting in the instantaneous clearing of high-leverage positions.

Bitcoin fell relatively little, only about 6%, while the performance of altcoins was more tragic, with some weak currencies falling directly back to the lowest point on January 20, and even reaching new lows. This wave of market washes shows that without sufficient financial support, the weak will continue to weaken.

Technical Analysis

The overall situation of the current market: Although it is impossible to confirm the stop in the short term, the current price is still not certain to be the bottom. It is necessary to pay attention to the double bottom pattern at the 4-hour level. Before there is no positive line covering the negative line and breaking through the 970-973 USDT area, it is not advisable to confirm the short-term recovery of the bull trend.

Support and resistance: The current lower support level is in the 944-949 USDT range. Whether this position is the bottom needs to be further observed. If these support ranges cannot be broken, the market still faces the risk of a correction.

Market sentiment and operation suggestions

Short-term bullish: Although the market has a short-term correction, it is still bullish in early January, especially in the market's shock adjustment, the trend of slowly climbing up is still visible. However, this kind of rising rhythm is slow, and there will be rapid pins and corrections in the middle, so special attention should be paid not to chase the rise and sell the fall.

Avoid rushing into the market: The current market sentiment is relatively unstable, and it is not recommended to rush to buy the bottom in the current price range. Especially ambush and ambushed, the former is a planned operation in advance, while the latter may be misled by the market trend. Entering the market too early may face the risk of further decline when the rebound is not complete.

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