December 19 Morning Thoughts:
Yesterday afternoon, the Bitcoin market bottomed out at around 103065, then surged to a high of 104763, overall oscillating within this range. The market hopes that the bulls can successfully complete the consolidation and accumulate sufficient strength to launch another upward attack. Meanwhile, Ethereum's performance has been relatively active, steadily rising from a low point of 3802, eventually climbing to a high of 3882. At three o'clock in the morning, the Federal Reserve's interest rate results were released, and since they met market expectations, the immediate impact on the market was relatively limited. However, the price trend did not rise as expected, but instead initially increased before falling. It is worth mentioning that our bullish outlook at midnight has indeed been validated to some extent in the early stages, but Powell's speech was like a thunderbolt, delivering a heavy blow to the bulls. His remarks hinted that the pace of interest rate cuts may slow down next year, which caused yesterday's trend to repeatedly test the key downward support level near 104000, making the process of the bulls reclaiming lost ground exceptionally difficult, and the overall trend resembled a strong flood release, resulting in a reversal.
In-depth analysis of the daily structure reveals that after a surge, the price quickly retraced, forming a special pattern with long upper and lower shadows. However, it is noteworthy that the current retracement low point coincides precisely with the previous high point, so it cannot be hastily determined that this is the beginning signal of a market reversal. After all, there are specific factors driving the significant shrinkage of the price this time. Considering the current morphological characteristics, after such a drastic price reduction, the price is highly likely to enter a corrective phase first, probably adopting a strategy of exchanging time for space. Once the correction phase ends, the price is still expected to gradually regain its upward momentum, starting a new journey of reclaiming lost ground.
Sell Bitcoin at 102000-102400, looking to test the 99500 level
Sell Ethereum at 3720-3750, looking to test 3620-3640
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