Let's talk about why BTC has dropped 7000 dollars in the past few days.
You can review the posts that Niu Ge posted earlier, repeatedly emphasizing the 23rd. Many friends who asked Niu Ge privately should know that what Niu Ge emphasized was the market's fluctuation and decline after the 23rd.
Looking solely at the moving averages, on the 23rd, Bitcoin's five-day line crossed below the ten-day line forming a death cross, indicating that short-term bullish momentum is weakening, and bearish forces are starting to dominate, which can easily trigger a fluctuation downwards.
Some friends have opened short positions on Bitcoin above 99000 and can target around 78000. This is a deep correction! There is a gap at 78000, and during this correction, it will definitely be filled.
Let's talk about the situation with ETH. Niu Ge said last night that it would rise above 3500, but was pushed down by a large sell-off at 3550. From last night to today, there have been multiple attempts to rise, but Bitcoin is not cooperating, and many bulls are taking profits, reversing to bearish. The large outflow of ETF funds is also not a lie. If ETH's current round of recovery does not continue during Bitcoin's consolidation, it should be capped at 3550, and we can only look to see 4000 after New Year's Day.
BTC resistance levels: 94400/95200/96000
Support levels: 92200/91000/89750
ETH resistance levels: 3450/3540/3600
Support levels: 3280/3250/2820
Be cautious in making long trades during corrections.
Spot market and first-level market
The first-level market currently has slightly decreased enthusiasm for the Sol chain, while the Base chain seems to have become more active. There is also a hot spot in the Desci sector. The ridiculous part is that Binance launched two perpetual contract coins yesterday, Cheems and Why. Before the launch, there was a lot of hype, but after the launch, they plummeted, directly halving. Here, it can only be said that it is all a conspiracy; most coins that only launch on Binance contracts tend to show a downtrend after opening!
In the secondary spot market, there are still small-cap coins being violently pumped every day. The same statement applies: if there is a lot of increase, you must sell. Also, many altcoins that are bottom fishing and have increased a lot must also be sold.
Currently, after the chain oil sector, the next sector has not emerged yet, just pay close attention to the market. Also, in terms of the overall market, Ethereum is currently stronger than Bitcoin. Here, Bitcoin needs to enter a new round of fluctuation range. On the first of next month, you will definitely see options starting with 8 or even 7!!!
Basically, many altcoins have corrected about 10-20% in the past two days!
Spot holdings are still at the bottom position, so just hold. If there is a lot of increase in the middle of the rise, then sell.
Recently, there have also been many changes in positions. Several old mainstream and chain oil coins have come out. I will choose to exit those with larger increases, and I continue to wait for a proper correction to buy back!
You must control your positions well, do not exhaust all your bullets, leave yourself an opportunity to bottom fish other coins.
