BTC has completed what originally required several days of ups and downs in just three days, with a sharp drop in a short time, causing many leveraged investors to be forcibly liquidated, making everyone in the market a bit panicked.
Now, the 92600 position is crucial. If BTC can hold this level and not continue to break below this range, it can stabilize and start to rebound, maintaining the overall trend. However, if it can't hold, then caution is needed as it may continue to decline.
When the market declines, there are more bearish messages, and when it rises, there are more bullish messages. This is the current situation. Due to the decline, many negative emotions have appeared online, but these messages haven't brought any substantial bearish impact; they mainly affect people's emotions.
It's not just cryptocurrencies; the U.S. stock market is also experiencing this. Due to the negative impact from Powell and some economic data, this week will continue to be discussed. For example, tonight's PCE data, if it rebounds as expected, will make the bulls even more nervous.
Regardless of whether people are bullish or bearish, their emotions are typically measured over weeks. So by next week, the negative emotions from this week should gradually dissipate. However, as Christmas approaches, the market may enter a brief calm period, with trading becoming less active.
The current price drop is partly a pre-reaction to the Christmas sentiment, as everyone wants to hedge in advance.
After tonight's PCE data is released, if BTC can hold 92600, that would basically mean stability. Observing the market performance over the weekend will give a rough expectation for next week's Christmas.
ETH should see a lot of buying around the 3000 mark, and other altcoins have mostly digested their leverage during this BTC decline. It is now a short-term cleaning phase.
The RSI indicator has dropped to 42 from 45, indicating that it might have reached a point where a rebound is possible.
There is currently a negative premium between BTC futures and spot, which is related to the recent options expiration. Expiration periods tend to cool down the futures and options market.
Overall, the current bearish sentiment mainly makes people feel bad and causes the decline, but it hasn't resulted in any real substantive damage. Once emotions are released, the market will return to normal.
Remember, survivor bias is very common in the investment market. When the market goes up, everyone talks about good news, and when it goes down, they talk about bad news. Many of these bearish messages now are trying to prove that the decline is correct; don't let these emotions affect your judgment.
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