The market is quite bad today, with Bitcoin continuing to plunge below 95,000, causing the entire crypto market to pull back, leaving many people shivering in place. The AI sector is also in a correction, with only trading-related AI gaining traction, while others remain relatively flat.
I was monitoring the market until late last night, and both support levels were sold off near the cost. For specifics, see the previous article (Bitcoin surges, will January see new highs? AI Agents still have hundreds of times potential, ACT surges?). The price of Bitcoin has dropped slightly after reaching the second support, but after a whole day of consolidation, there is still no upward momentum, and new entry points need to wait for another drop.
From the daily line structure, the market has formed a bearish engulfing pattern, indicating that the bears are aggressive. The penetrating bearish line has damaged the previously established upward structure, and the price has returned to a consolidation trend. The subsequent consolidation time will be extended. Meanwhile, after this wave of correction, the previously horizontal MA30 is bound to curve downwards. When the price again tests the downward-curving MA30, it will be a new major resistance level. Do not rush to chase the first local high.
The main decline in the current 4H trend structure has emerged, and the price is in a residual state. New opportunities will either wait for the hourly line to complete 3~5 days of bottom consolidation before choosing a new direction or wait for a further drop to make a local oversold rebound.
Short-term support at 93358~92610 (monitor this), medium-term support at 90817~89162 (oversold rebound), short-term resistance at 97611~99823. No updates on other ideas for now; just approach with caution, and analyze based on specific developments later.
Tonight the data has arrived. The U.S. small non-farm payroll data for December recorded 122,000, below the market expectation of 140,000, marking the lowest level since August 2024, which continues to raise market concerns about the employment situation.
After the data update, the pre-market gains for U.S. stocks basically turned into declines. Among the seven tech giants, NVIDIA is once again leading the way, with Amazon and Meta following slightly. I wonder if NVIDIA can still lead tech stocks to stabilize the U.S. stock market tonight.
Just a reminder, pay attention to the monthly employment report to be released on Friday. This is one of the last important data points before the Federal Reserve makes monetary policy decisions.
I just finished looking at the three major mainstream coins. The common feature is: after experiencing a large bearish candle yesterday, the downtrend has slowed today, but generally, there is no bottoming structure, so the space for a direct rebound here is insufficient. Everyone should not rush to operate; there are two good trading models:
Route 1: The hourly line revolves around the existing low points. After experiencing 3~5 days of bottom construction, once the moving average system gradually forms a golden cross, there will be a relatively high certainty opportunity.
Route 2: Wait for the next two days. After a daily line shows a trend of 3 downs in 4 days, the price will also approach the lower support level for long-short plays, targeting a rebound of 30%~50%.
This wave of Bitcoin correction has been tough on altcoins, as basically none of the top 300 altcoins have seen any increases.
There are stablecoins everywhere above, which means altcoins have entered a state of general decline, especially the older altcoins in the secondary market are suffering the most. When they rise, they are absent, but when they fall, they drop even more, unlike AI agents projects.
Even though Binance launched contracts for swarms, cookie, and alch last night that caused the entire AI agents sector to crash, one should know that these AI agents projects have multiplied many times recently, so this correction is really just a minor dip.
Even though the entire sector was correcting last night, there were still two standout projects, catg and cnjr, bringing users dozens of times returns, and there are also newcomers like max and buzz that surged into discussions about 100 million blue-chip projects. In short, the profit effect across the entire network is now focused here.
AI agents are undoubtedly the narrative main force in this round and even future rounds of market activity. Even the infrastructure and applications of crypto over the past ten years will be reshaped in the AI world, and the current so-called framework can be viewed as public chain infrastructure.
In the future, various ecosystems will gradually become AI-driven, and the participation model for retail investors will also gradually tier. Pumping on the internal market can be seen as the original IDO, and the end of the internal market is equivalent to entering the secondary market. Smaller funds will push the first tier with more time, while larger funds will seek certainty in the second tier. Of course, after making profits, one still has to return to the principle of Bitcoin being the largest, as converting to Bitcoin is the eternal correct investment strategy.
