Hello everyone, I am A Gan, let's talk about the current market trend
Last night around 9 PM, Bitcoin started to slowly oscillate near the high point of 105,000. After the announcement of the interest rate cut, it began to fall rapidly, breaking through the support level of 103,000. It dropped to around 100,300 and stabilized with a rebound. The area around 100,500 was just a small support, so it rebounded to 102,600 but couldn't go up and fell back down. Then this morning, it dropped again, falling below 100,000 to the next support around 99,000, beginning to rebound
Currently, Bitcoin has tested the 99,000 level twice and stabilized with a rebound. If it breaks this level, it will head towards the strong support level of 94,000. Looking at the current market, I think the drop today is nearly over, and it's difficult to continue a waterfall decline. The market has fallen a lot, and the rebound and consolidation are more pronounced, but the rebound shouldn't be too large. Bitcoin needs to break through 102,500 at least for an upward trend
Yesterday, Ethereum also dropped near 3,880. The first wave broke the 3,800 level, and the contract fell to 3,630, beginning to rebound. It rebounded to 3,730 but couldn't go higher and continued to retrace. In the morning, it dropped again, hitting around 3,540 and rebounding. This position is just a strong support level on the daily chart, so it rebounded. For Ethereum, the key support to watch is 3,500; as long as it doesn't break, there shouldn't be any issues. For Ethereum to rise, it needs to break above 3,750 and stabilize; otherwise, it will continue to fall within the range of 3,550-3,750 with a lot of fluctuations
During the live broadcast, I also mentioned there should be another round of selling. Ethereum could be bought at 3,550, and everyone should have heard that
The reason for last night's drop is something everyone should be clear about. The Federal Reserve's interest rate cut is not necessarily good news; why did it still plummet? Because 30 minutes after the rate cut announcement, the Federal Reserve Chairman gave a speech, making some hawkish remarks. Furthermore, next year's rate cuts will only happen twice, reducing the cuts by two times. Currently, the inflation control in the U.S. is also not very optimistic, which led to a continued drop in U.S. stocks after the announcement of the rate cut. The Nasdaq dropped nearly 4% at most, and the market followed with a decline; these are the main reasons for the market drop
So what should we do next? For those playing spot trading in the medium to long term, if you have 30-50% of your position, just hold on; there's no need to rush to add to your position. You can continue to wait for a dip at the end of the month or in January to add more. The short-term market won't have a very good surge; if there is, it will only be a rebound.