Market dynamics analysis of Bitcoin and Ethereum

Will Bitcoin hit $110,000 again?

On December 14, 2024, at 10:24 AM in UTC+8, discussions about Bitcoin's future trends once again drew attention from the market. Whether Bitcoin will hit the $110,000 high again has become the focus of investors. Through detailed analysis of the market, we found that Bitcoin currently faces the possibility of a deep pullback, but this pullback may also just be a bear trap. Combining technical aspects and liquidation data, we believe that Bitcoin's trend is still filled with uncertainty.

Recent key technical analysis of Bitcoin

Yesterday, Bitcoin's price briefly fell to $99,200, just hitting our previously set Fibonacci retracement level of 0.618. However, this pullback did not breach $99,400, and the price rebounded afterwards. We pointed out that there are three important resistance lines in the key upward range for Bitcoin:

1. The first line: This is the previous technical support area.

2. The second line: This is the previous small peak structure, around $100,000.

3. The third line: This is a key point that determines the future market direction, especially crucial for the market during the Christmas period.

Currently, Bitcoin is testing its bottom area. Although the daily chart shows some signs of fluctuation, the bulls have a slight advantage. In the smaller K-line chart, there is a bullish engulfing pattern, suggesting that bullish strength has slightly prevailed, but whether it can break through the range still needs observation.

Possible bear traps and liquidation data analysis

From the liquidation map, Bitcoin's current short leverage is concentrated above $102,500. Therefore, there is a certain risk of 'stop-loss hunting' in the market; market makers may pull up prices, knock out short stop-losses, and then reverse downwards. This short-term price fluctuation may be a deliberate market-making fluctuation to eliminate short forces in the market.

Currently, Bitcoin's bulls remain strong, but the possibility of a bear counterattack still exists. It is advisable for investors to set reasonable stop-loss levels when trading and pay attention to changes in liquidation data to avoid blindly chasing positions.

Analysis of Ethereum's fluctuating trend

Compared to Bitcoin, Ethereum's performance is weaker. It is currently in a state of fluctuating consolidation, with the fluctuation range gradually narrowing. In the short term, whether Ethereum can break through the current box structure remains a focus of the market. If Bitcoin fails to break through $100,000 and experiences a pullback, Ethereum may follow its trend and break below the support of the fluctuation box, leading to further decline.

From the perspective of market liquidity, although the inflow of Ethereum has slowed down, it still maintains a net inflow status. The inflow situation for Bitcoin is even more robust, with several days of net inflow, indicating market confidence in it. Overall, the spot market still supports the prices of Bitcoin and Ethereum, while the risk of a deep correction is relatively small.

In the short term, the market's fluctuation state may continue, and investors should not be too eager to act. It is advisable to patiently wait for clear breakthrough signals from the market before making decisions. For bullish investors, do not blindly chase high prices, while bears need to set higher stop-loss points at high levels.

Summary

Overall, both Bitcoin and Ethereum are currently at a critical moment for technical decision-making. The market has not formed a clear trend, and in the short term, it is more of a fluctuating market. In this environment, investors should remain calm and avoid overly frequent operations, especially in a market without a clear trend. Spot investors can continue to hold, but should not expect significant rises in the short term.

Currently, market operations are more about the game of 'patient waiting' and 'timely stop-loss'. For investors with funds, following the steps of mainstream institutions may be a more prudent choice. While the short-term fluctuating market may confuse some investors, a long-term choice of a stable operating strategy will yield more returns.

At the same time, we recommend joining our community for more real-time market analysis and trading advice.