Daily Market Analysis
Today is Christmas, so first of all, I wish everyone a Merry Christmas. However, there is no public holiday in the country, which is a bit unfortunate. The Christmas atmosphere in first-tier cities is still quite strong, and everyone can feel it.
News
Yesterday, the S&P 500 index hit a new high during trading and closed at a near peak, which also drove cryptocurrencies up.
Last night, the fees for Bitcoin and Ethereum deviated significantly from normal values. As of the time of writing, the fees are still climbing, and the cause is unclear. Generally, there are more people going long on almost all mainstream coins.
Price Action Analysis
Yesterday, it seemed like there was a significant increase, but in reality, the maximum was less than 2%, so the volatility is basically within expectations. Currently, with fees around 0.005% or more, this indicates that there are already a lot of people going long on mainstream coins. Given the heavy positioning, it is evident that the difficulty of pushing prices up is considerable.
Looking at the small cycle for Bitcoin, the fluctuations over the past two days have basically stayed within the range, with the upper and lower boundaries being relatively clear. It is still possible to take short positions or small long positions within the range, which has a higher success rate.
In the larger cycle, Bitcoin is still within the reasonable range of 850-905. Therefore, if anyone wants to trade in waves, it would be better to buy at the upper and lower boundaries as the potential space is larger. However, there should be opportunities for everyone to get in on Friday.
$BTC btc strategy: go long around 867, go short around 880.
For Ethereum, its bullish momentum is even weaker, as it has not tested the previous resistance level. Since the bearish strength broke through yesterday, the false breakout was particularly long, indicating that at least from the current market perspective, bears still hold an advantage. For Ethereum, if anyone wants to trade in waves, they should also look to buy at the upper and lower boundary positions for a more comfortable holding position.
$ETH eth strategy: go long around 2910, go short around 2980.
