The double top correction has really arrived! Will Bitcoin drop to 93,000 this time?
BTC failed to break through 100,000, forming a double top. The soft support is around 95,500, and the strong support is near the 93,000 neckline of the M pattern.
Yesterday, Shu Qin clearly advised everyone to take profits on high-leverage contracts because Bitcoin at 100,000, ETH at 3,530, and SOL at 200 are all previous high resistances, so there was no need to gamble on a breakout. We can take profits first, then stay still and wait; if it truly breaks through, we can buy back without losing much, but it's much safer.

And yesterday there was no breakout, so we can take advantage of the correction to buy back at a lower price.
Additionally, we clearly indicated to escape at 380 and 390 for AAVE, waiting for a correction to buy back. I wonder if everyone took profits? This is the short-term trading mindset: sell at resistance when it rises, and buy back at support during a correction.
As for long-term positions, there’s no need to elaborate; just hold on. I have 70% of my position in long-term, and 30% in short-term, and I go all in when there are good entry points.

Wow, are we going to face neck line resistance? Is it that Zhao Changpeng is giving everyone Christmas gifts? I hope we can break 100,000 tonight.

Now all the coins have reached their limit! Can they go further?
Bitcoin is approaching 100,000 again, ETH is 3540, and SOL is 200. They have almost reached the bottom of W and are near the previous high neckline. It is normal to have resistance here. High-multiple contracts can consider taking profits near the resistance, because if it cannot break through, it will become a double top again. After it confirms the breakthrough, it will be more stable to re-enter the market on the right side, and there will be no loss. In this way, BTC will return to the previous high of 108,000, and ETH will encounter resistance again when it reaches 4,000.

However, my 2x long-term position is still firmly held, because the bull market has just started, it has only been 2 months, and there is still a year of growth behind it. ETH will definitely go to 8,000, and SOL will go to 500, just hold it.

And Sol’s previous right-side trading was correct, and it should be confirmed after the breakthrough. What about Sol? It failed to break upward last week and broke downward instead. Now it has rebounded from the bottom of W. 200 is the first resistance of the neckline, and the second resistance is here at 215.
I, Sol, will still wait for it to break through the 220 downward trend line before adding leverage to enter the market, and make a trend to 260.

As for spot or 2x long-term, just hold it. 70% of my positions are long-term, and 30% of my positions are waiting for opportunities. I will open a wave when there is a good point. For example, the day before yesterday, we opened BTC at 92,600, double bottom support, and ate 100,000. I am very satisfied.

It seems that the BTC long positions from last night have taken off?

Hmm? Did AAVE escape the peak with me?

Let's talk about AAVE.
The reason this coin is skyrocketing now is because, as we mentioned before, its TVL (Total Value Locked) has far exceeded the peak of the last bull market, while its price is only in the 300s, much lower than the last bull market peak of 670, indicating it is undervalued.
Moreover, the Trump family's WLFI has also increased its holdings in AAVE, which we analyzed in two dedicated episodes, so I am not surprised by its rise.

However, what I want to say today is that its short-term rise seems to be leveling off; it has already reached the previous high of 390 today, which presents significant resistance, so it may be a good idea to take profits at this high point and wait for a pullback.
I will keep an eye on support levels above 350, such as 355, to re-enter on dips.
In fact, whenever the market is doing well, I usually choose to continue holding, but now with many coins plummeting, AAVE is about to challenge this year's previous high again. It feels like the overall environment is a bit unfavorable, and I want to wait for a pullback.

Additionally, I have also invested in two other ecosystem coins of Ethereum, Uni and Puffer. They are currently experiencing a slight increase, but not as aggressively as AAVE, which is still acceptable.

Alright, AAVE is quite wild, it was 329 in the afternoon, and now it's 340... I'm a bit tempted to take profits first, what should I do...

The Bitcoin greed index has dropped sharply! When will the new market start?
The greed index has dropped from 95 last month to 70 now, which is a very benign correction.
Now Wall Street, the largest financier in the cryptocurrency circle, has begun to hibernate. During Christmas and New Year's Day, although the NYSE is still open, most fund managers are on vacation in warm Hawaii or Florida.

Retail investors also need to sell some of their coins to buy gifts and celebrate the holidays, so now that financiers are on vacation and retail investors are spending, the cryptocurrency circle will be weak in the next one or two weeks, which is in line with the law.
I think the market should start in early January, when Wall Street returns to the battlefield, retail investors return to the cryptocurrency circle after the holidays, and then on January 20, there will be Trump's inauguration and the strategic reserve of Bitcoin. I think there is a high probability of a surge.

So before January 20, I was hopeful. In addition to mainstream coins, small coins such as Doge, Pepe, Uni or AAVE are all pretty good, and Shuqin has ambushes.
The current price may not be the bottom, but compared to being trapped in a short period of time, I am more afraid of missing out, so I will buy some at low points and wait for Trump's prosperity.

What is the current situation in the cryptocurrency market?
After a rebound yesterday, Bitcoin and several altcoins have experienced a small pullback, but everyone shouldn't panic just yet; it hasn't dropped to new lows, and there hasn't even been a second bottom test. I don't think there's much to worry about.
Since it's the weekend now, Wall Street is closed, so there isn't much extra capital flowing in. We'll wait until the market opens on Monday evening, and then we can take a look; there should be a good chance for stabilization and continued rebound.
This second pullback was also within our expectations because, as Shuqin mentioned yesterday, ETH will face some resistance near 3600, prompting everyone to take profits at higher levels. I wonder if anyone managed to escape the short-term peak? More operations can be discussed as well. The current trend is still in line with our expectations~

The cryptocurrency market has fully rebounded! What should we do next?
Ah, we've finally made it through. In a bull market, there are often sharp drops, and there are many long positions. Meanwhile, bears take profits during the plunge and switch to long positions, and then a new market begins. Shuqin mentioned this to everyone yesterday, don't be afraid of sharp drops, hold onto your coins, and if you have spare money, boldly buy the dip.

Yesterday's turning point was the positive PCE data and the Trump family's WLFI project increasing its ETH holdings. Shuqin notified everyone immediately that a rebound was coming. I wonder if you guys had the courage to enter the market?
Currently, ETH is approaching 3600, which may face some resistance, and then the second resistance is near 4000. High-leverage contracts can consider taking profits near resistance, while spot and 2x long-term positions can be held continuously, looking at 8000 by March next year.

As for Shuqin, she traded 700 ETH yesterday, which can be considered a small gain, and the price charts were shared earlier.
Trading cryptocurrencies is about being greedy when others are fearful; extreme panic is the time to enter the market, buying what others dare not buy.

The turning point of the cryptocurrency world has finally come!
The inflation data just released showed that both PCE and core PCE beat expectations, falling an additional 0.1%. This greatly alleviated the current rumors that the Federal Reserve will cut interest rates less next year, and now that Wall Street is back to work, a rebound is expected.
In addition, if you look at the on-chain data, you will find that the Trump family's WLFI has increased its holdings by 759 ETH. Oh, Trump is buying at the bottom?

Americans are waking up.

[Analysis] What will happen to the "slow rise and sharp fall" in the cryptocurrency circle?
It usually occurs in the rebound or trend reversal rising stage, which is a typical bull market wash-out technique.
A coin has finally risen for a few days, and suddenly fell sharply in one day. The rise of a few days is not enough to fall in one day. In this way, most novices and those with poor tolerance will obediently hand over their chips;
After the decline stops and stabilizes, it will start to rise slowly. Generally, the stock price will hit a new high. When it reaches a certain height and there are many follow-up orders, the main funds will repeat the old trick again and kill the car on the way up. Generally, this kind of decline is characterized by fast speed and short time.
Sometimes in just a few days, the market will fall by 5%-10%, and sometimes it will be 15%-20% for a long time; but generally it will be adjusted to the maximum limit with important support lines.

Finally: Do you have anything to say to Powell?

If it falls again, I will call the police!

Damn, this is confusing me, what should I do now?
I am very worried about one thing. Although the Bitcoin callback is normal, it has risen from 60,000 to nearly 110,000, and the callback to 90,000 is acceptable.
But what I am worried about is that Bitcoin is still at a high level, while the altcoins have already jumped. Assuming that Bitcoin does not hold up here and continues to callback to 90,000 and 93,000, what will happen to the altcoins?

But don't chase the poor enemy. Coins like ETH have fallen so much, there should be a rebound, such as around 3,600. So if your leverage is too high, you can reduce the leverage when it rebounds to prevent it from happening. And those who have extra money can buy some. I think it will rebound after such a big drop, and then choose the direction again.

In the worst case, the absolute support of BTC is 90,000, and the support of ETH is at the 3,000 mark. Everyone should pay attention to their leverage. Although Powell's market crash this time was beyond everyone's expectations, I think there should be a wave of market after Trump's inauguration on January 20, so I regard this pullback as a necessary consolidation before another rise. I will take a gamble on January 20. There are still 30 days left, so there is plenty of time for the market to consolidate and recover.

The biggest opportunity in this wave of crash should be Doge, and I will enter here!
Doge has pulled back from 0.48 to 0.34, a 30% decline, and the coin price has already consolidated sufficiently. The next support is around 0.25. I think this is an opportunity because a month later, Musk is going to take over the White House, and there is an 80% chance that Doge will surge.

Additionally, I want to take a jab at Powell here. This old guy really has nothing better to do. He said he does not support Bitcoin, causing a huge disturbance, which forced us to stop-loss our Ethereum longs. I haven't tasted a stop-loss in a long time, so thank you very much!

As it stands, ETH still has a lot of buy orders, and the support is very strong. Therefore, I will buy some ETH on the dips. Of course, I definitely can't use high leverage for left-side bottom fishing; just using a safe 2x leverage is fine. With 2x leverage, a 50% drop would lead to liquidation, but ETH won't drop to 1600, so there is no risk. However, the return is X2. My long-term position in ETH will be firmly held until the Prague upgrade in March next year. No one can shake my faith.

Shu Qin entered the crypto space in 2017 and has seen all kinds of storms. A doubling of ETH is really nothing when it pulls back 10%-20%. If you are anxious and can't sleep well, maybe you should check if your leverage is too high?
I still tell newcomers the same thing: earn as much money as your principal allows. Don't be greedy for multiples just because your principal is small; it is easier to go to zero.

Ah, something went wrong again. Can the crypto market recover? Let's take a look:
A statement from Powell caused the Nasdaq to plummet by 3.61%, close to the largest drop in recent years. Moreover, Powell's hawkish remarks didn't stop there! He specifically criticized the crypto market, stating that the Federal Reserve cannot hold Bitcoin. This led to a 5% drop in Bitcoin, which is just terrible.

This is a hard market crash; no one could predict what he said, it really was a bolt from the blue. It's not just retail investors; even Wall Street can only stand there and take the hit.
The main reason for this plunge is Powell's indication that there won't be significant interest rate cuts next year, possibly only two cuts, which has caused various assets to decline.

However, the crypto market is holding up relatively well, with Bitcoin's drop being similar to that of the Nasdaq, without much additional decline. Powell's statement about the Federal Reserve not holding Bitcoin does not affect Trump's Bitcoin strategic reserves because the strategic reserves are held by the government, not the Federal Reserve.
So on January 20th, when Trump takes office, there is still a good chance that BTC will become a national reserve.

In fact, despite Bitcoin's sharp drop, if you look at ETFs, there is still a significant net inflow of funds. What does this indicate? It shows that Wall Street views this plunge as an opportunity to enter the market, not to exit.
During this period, there may be some secondary bottom testing, but don't be afraid; these are all opportunities to get on board. Once the adjustments are done, the crypto market will set off again. Shuqin is with everyone!