Bitcoin reaches a critical range position, be wary of another drop below 90,000
Hello everyone, today is the last day of 2024. I hope everyone can keep making profits today until next year, 2025. Let's celebrate the New Year together tonight.
Let's start by discussing Bitcoin. We have basically captured most of the market during this significant pullback. Currently, I am holding Bitcoin around 986,000, having reduced positions at 95,200 and still holding.
Currently, the BTC price has fallen below 92,700. As shown in the picture below, it is still in a downward channel trend, with lows being continuously tested. After falling from the high of 108,400 on the evening of the 17th to around 92,300, it rebounded to nearly 100,000 on the morning of the 26th, then touched a low of around 91,500, and subsequently, the price rebounded again to around 95,000 this morning, constrained by the downward trend channel, touching a low of around 92,000 again. Will it continue to bounce back to the top of the trend channel this time?
From the chart alone, we can see that the highs are continuously decreasing, and the lows are also being tested repeatedly, which is not a good sign. The probability of breaking below the previous low again is relatively high.
Looking at the indicators in the attached chart, there are certain signs of a rebound, so we need to manage risk well when operating short positions. Today, we should focus on the resistance in the range of 93,500-94,200 above. We can consider entering short positions again in this range. Keep the stop-loss above 95,000, and the targets can be 92,500-90,400-88,000. After breaking these levels, we can continue to hold, and remember to move the stop-loss once the target is reached. The picture below shows the 1-hour chart of Bitcoin.
POL
Friends who like small coins can pay attention to POL. As shown in the picture below, it is also under the pressure of a downward trend channel. We can focus on the range of 0.466-0.4788 to enter short positions, with a target of 0.39 for breaking, then reduce positions and continue to hold while moving the stop-loss. The picture below shows the 4-hour chart of POL.
Friendly reminder: All market trends do not have a 100% direction. Please ensure proper risk management and do not participate blindly with large positions. The market is not something we can control. What we can do is enter at suitable points, manage risk well, and if we are correct in direction, we hold; if wrong, we take losses. Do not stubbornly hold losing positions or operate out of spite; these are fatal actions.
