Overnight U.S. stocks closed mixed, with the Dow down 0.29%, the Nasdaq up 0.97%, and the S&P 500 index up 0.24%. Both the Nasdaq and the S&P 500 index reached new historical highs again. The crypto market saw more declines than increases, with Bitcoin's drop affecting Ethereum and some altcoins, leading to panic in the market. Many people are anxiously seeking information and consulting 'experts.' Of course, there are also many who are cutting losses; in fact, most of those cutting losses are recent buyers at high prices. If you managed to position yourself in advance, there is actually no need to panic at this moment, but rather to seize the opportunity to average down. The coins that have dropped significantly are mainly concentrated in the meme sector and governance tokens. There are varying opinions regarding the current pullback, with some saying Bitcoin is hesitant to break through $100,000, with $99,588 being the historical peak. Others mention the Syrian civil war, tense Middle Eastern situations, and the escalation of the Russia-Ukraine conflict; however, these are not the main reasons. The biggest factor is that a series of U.S. economic and financial data will be released in December, which relates to whether the Federal Reserve will cut interest rates. However, this volatility can also be seen as a tool for whales and institutions to drive down prices, and this fluctuation is the buildup before sector rotation.
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On Monday morning, Bitcoin surged to around $98,180 but faced resistance and fell back. In the afternoon, it retraced to around $94,836 and then began to rebound. Later in the evening, Bitcoin saw a surge, recovering to a high of $97,400 before facing resistance again, dropping back to around $94,440, and then rebounding to oscillate near $95,000. Based on the retracement space on the four-hour chart, we can still view the current pullback as a correction. The last large bullish candlestick's bottom is the critical point for bulls; as long as it remains above this level, the market will continue to maintain a strong consolidation pattern. From the current structure, the market's strong characteristics remain evident, and the local pullbacks are also building strength for the bulls. On the hourly chart, the market has gone through a wave of retracement and consolidation, which has digested the overbought pressure from the auxiliary indicators. The short-term trend has slightly slowed down and has entered a rebound recovery trend. Don't easily think that the short-term pullback during the trend consolidation phase signifies a trend reversal. The overall direction remains bullish, just a distinction of a consolidation period. Our outlook for the future remains bullish, focusing on averaging down and buying at low positions:
