On Monday before the US stock market opens, the BTC price remains in a sideways consolidation along the lower edge of the fluctuation channel - the cyan line. The market dynamics from Monday to Tuesday are likely to develop based on the support status of the cyan line;
If the cyan line continues to maintain effective support: the price will consume the remaining floating supply through a shrinking volume downtrend, and then it will rebound towards the middle track for another test, currently around 99900;
If the support of the cyan line begins to fail and the price breaks down: then the market is likely to conduct another test of the blue average support zone, which is currently in the range of 91500~88900;
Overall, the market is completely in a range-bound state. Long-term spot traders can take a break for Christmas. Although the bullish trend at the daily level has been disrupted, the weekly level is merely in a state of trend pause. The next step is to wait for this range to break out in a new direction, deciding whether to continue riding the bull or to get off;
Short-term futures traders can start operating. Each time the price approaches the blue average support zone is a great swing long opportunity, while a price pullback to the middle track is a good short opportunity;
The biggest benefit of these two approaches is that they eliminate key price levels on the chart, providing us with a good stop-loss point. Long-term traders understand how important a good stop-loss is!
Especially in a volatile market, trading rules require us to set stop-losses, but if the stop-loss is too far away, it will lower the risk-reward ratio, leading to reduced capital efficiency. A stop-loss that is too close in a volatile market is essentially giving away money. Therefore, a good stop-loss position is far more important than a good entry position;