Morning Thoughts on December 26:
It was initially thought that the market fluctuations would be limited during the U.S. stock market holiday; however, the cryptocurrency market has presented a different scenario. The price of Bitcoin touched a high of 99,450 in the early hours before experiencing a slight pullback, and overall has been in a high-level consolidation phase, currently hovering around 98,600. As for Ethereum, the price surged to around 3,539 in the early hours, predominantly following a volatile trend around noon. In the evening, the price of Ethereum once again surged to around 3,547 before facing pressure, then quickly fell back, reaching a low of around 3,455.
From a four-hour perspective, after being blocked by the upper Bollinger Band, it broke through the middle band downwards, but ultimately closed above the middle band, breaking the previous strong upward pattern relying on the middle band. After the second wave of upward movement released space, the market showed a pattern of rising and then falling back, breaking the short-term strong trend, and entering a correction phase. However, it needs to be clarified that this correction is not a trend reversal, but merely a process of adjustment and buildup during the upward trend, with further potential to challenge high levels again. It is still too early to assert a trend reversal, as the previous upward movement did not experience any strong corrections, and now the local pullback has been completed, suggesting that bulls still have considerable upward space in the future.
Buy Bitcoin in the range of 97,800-98,300, targeting 99,500-100,000
Buy Ethereum in the range of 3,420-3,450, targeting 3,550-3,650
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