Analyst Liang Qiu: Bitcoin/Ethereum Rapidly Declines Again on 12.20 How to Grasp Short-Term Opportunities
Bitcoin/Ethereum rapidly declined again in the early hours, following the same script as yesterday morning, with Bitcoin/Ethereum dropping to around 95660 and 3322. Over the past two trading days, Bitcoin has dropped nearly 13000 points at its peak, while Ethereum has dropped nearly 800 points at its peak. Our strategy of shorting first and then going long yesterday allowed us to capture half of the space on the short position, but entering long midway ended up being a forced stop loss. The stop loss positions discussed in yesterday's live broadcast were 3520 and 98000. The market has broken down multiple times, and we now need to pay attention to whether the pin bar positions at 3320 and 95600 can form support.
In terms of the K-line pattern for Bitcoin/Ethereum, recent K-lines have shown a clear downtrend. In the 4-hour timeframe, the price has quickly fallen from a high of above 108000/4100 to around 95600/3300, forming a series of continuously descending lows. In terms of technical indicators, the MACD in the 4-hour timeframe has consistently remained negative and is expanding, with both DIF and DEA below the zero axis, indicating strong bearish momentum. Currently, the short-term volatility is large, and the trend is weak, so it is advisable to operate from a high short position. The resistance levels to watch above are 98500 and 3600, to effectively capture wave operations.
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