In recent days, Bitcoin has dragged the entire market down sharply, almost like a merciless meat grinder. As early as December 17, I reminded everyone that the market might be due for a correction, and technical indicators also showed signs of decline, advising everyone not to open contracts. Friends who took this advice should have avoided this sharp drop. So, how will the market move next? Let me briefly share my thoughts; those interested can take a look. This is just my personal opinion and not investment advice!
There are many reasons for this sharp decline. On the Fed's side, Jerome Powell said that they cannot buy bitcoin and do not want to change the law, which poured cold water on the market. Also, those who made money previously now want to take their profits and secure them. Additionally, we cannot rule out the possibility of large holders deliberately suppressing small retail investors. However, to be honest, although this drop is fierce, from 108,000 to 92,280 is less than a 15% drop, which is still acceptable. Many altcoins have been halved, like Dogecoin, which dropped from 0.48 to 0.262, that’s really severe, dropping 45%! Think about the last correction, where bitcoin fell from 73,777 to 49,000; that was truly shocking, the magnitude was terrifying.
Now, it seems that bitcoin has stabilized a bit, rebounding to around 97,000. I estimate that over the weekend, the market will fluctuate around this position to consolidate. At this point, it's not suitable to make random moves, but if you think the price is right, buying some spot to hold might be a good choice.
BNB has also dropped significantly, from a high of 793 to around 620, a drop of about 21%. However, as a mainstream coin, it has shown some resilience. If you are skilled in spot quantitative trading, operating back and forth at this time might still earn you some profits.
Ethereum is suffering a bit more, hitting a low of around 3100, with a drop of nearly 25%. After this rebound, we need to adjust our strategy. Fortunately, some institutional ETFs are buying; otherwise, we wouldn't know how far it would drop.
Some important information:
1. South Korean Deputy Prime Minister Choi Sang-mok stated that the government holds a positive attitude toward cryptocurrencies, deciding to postpone the introduction of the crypto tax and is formulating new regulatory policies.
2. Deutsche Bank is developing a blockchain network project called dama2 based on ZKsync technology, aimed at improving trading efficiency and strengthening regulatory compliance.
3. According to monitoring, investors have withdrawn 204,772 bitcoins from exchanges in the past 60 days.
Speaking of today's daily BTC market analysis, looking at the K-line, the 1-hour level shows an upward trend (momentum is insufficient and about to stabilize), the 4-hour level is upward, the 12-hour level is downward, and the daily level is downward, with an intraday resistance level of 100,000 and a support level of 94,000 USD.