The market rhythm is proceeding as anticipated; the US is still on holiday, Bitcoin is seeking a bottom, and altcoins are consolidating.
Why is there a decline?
Currently, there is no new negative news. It is quite normal for BTC to fluctuate around 95000 USD, especially since the lowest fluctuation range after the election was around 92000 USD. The subsequent rise was merely due to various positive information. Therefore, fluctuations during the recent low liquidity period are not unusual.
This indicates that current investors have normalized their emotions during the holidays. Most retail investors have sold what they needed to sell and bought what they intended to buy. Without intervention from institutions or large funds, trading volume will remain around this level. Unless new positive or negative stimuli arise, emotional buying or selling is unlikely to happen again; otherwise, it will likely continue to maintain a state of oscillation.
Today's market: Bitcoin key support at EMA55, 90500.
EMA55 is the defensive position for the bulls, and 90500 is the key defensive area on the order book. Holding this level means the daily bullish structure remains intact, and the market is likely to continue. Falling below it increases the difficulty of trading, triggers selling pressure, and weakens market sentiment, collapsing the profit effect. In simpler terms, there's no need to predict whether it will break, but once it does, restoring market confidence will take longer, similar to the market conditions in April of this year...
Ethereum looks quite strong on the daily chart, but don't forget that today the ETF is back in action. You'll see who the big boss is then; don't be fooled by the Asia-Europe trading sessions, the big boss is BTC. Only when the big boss is strong can ETH break through the resistance at 3440 and 3550; otherwise, you'll just be waiting for lower points. The first support at 3333 has already risen to the resistance at 3440. In fact, the current market conditions are quite favorable for trading, as both the downward and upward trends provide opportunities to exit and enter the market, with no signs of a one-sided market.
In the battle between bulls and bears, everyone should operate with caution: refuse to be complacent; the market seems calm now, but there are undercurrents; the best approach is to observe and wait for an opportunity to buy the dip or enter the market. I believe the market won't disappoint your patience.
At this time, it's important to pay attention to trend trading; it's best to wait until it stands above before buying. Personally, I think if it doesn't stand above, the possibility of another drop is greater (not bearish, just expressing a realistic view of the market).
My approach is also very simple: I will not open any contracts or leverage; I will not touch my long-term spot positions. I will clear out my short-term positions that I currently consider non-Alpha projects and try to increase my USDT positions, waiting for opportunities to enter.
The bull is taking a break to drink water in the middle of the field; take this opportunity to buy 2 coins during this pullback.
1. PNUT
The internet-famous squirrel has reached a strong support level in the short term, showing a small rebound, with the potential for a short-term bounce! ACT is moving in sync with it, with similar patterns, but pnut may be more reliable than ACT. These two will be another wave of popular coins after being launched!
2. ENA
ENA has seen a pullback near its historical high, which is normal for the overall market trend. It has returned to above 1 and has always been a coin with dark horse potential. The current upward trend is obviously incomplete, and there is still a long way to go for upward momentum!
