Master Discusses Hot Topics:

After Christmas, although the market did not experience the expected intense fluctuations, Bitcoin remains strong around 99k, which is a good signal. The Christmas market may have ended, but the Master believes this does not mean the market's heat will dissipate immediately.

In fact, market fluctuations are likely to continue until around January 6, especially after the U.S. stock market opens tonight. Although liquidity and trading volume will be much lower, this does not mean that market opportunities will disappear.

Looking back at the past two days, the Master noticed that many KOLs were still discussing the possibility of Bitcoin breaking through prices starting with 7 or 8, and now that Bitcoin has broken through 99k, this change may surprise some people.

From a trend analysis perspective, the market is not entirely being hyped up; rather, some investors have begun to gradually accept the expectation that the Federal Reserve may only cut interest rates twice in 2025.

From the market reaction after Powell's speech, Bitcoin stabilizing around 100k indicates that investors are psychologically prepared for a long-term hawkish policy. The core PCE data released before Christmas may have alleviated market sentiment to some extent.

Before liquidity recovers, the market may continue to oscillate and consolidate. In the short term, the trend after the U.S. stock market opens tonight will be key in determining the market direction.

Although most institutional investors in the U.S. are still in holiday mode today, liquidity after the stock market opens will always be slightly better than during the holidays. So how will investors in the U.S. stock market choose in the face of Bitcoin, which has already broken through 99k?

Will they reassess the market situation, muster the courage to continue buying, or choose to hedge and sell off? The answer will soon be revealed. Furthermore, with the New Year's holiday approaching, the market sentiment over the next two days will be very critical.

As for the short-term trend, the Master personally believes that predictions are not very meaningful. Right, it's just more floating profits; no, it's just temporary paper losses. As long as you confirm that the overall trend has not changed, holding positions is still the correct choice.

Additionally, from the turnover rate of Bitcoin, it has decreased by nearly half compared to Christmas Eve, which is within the Master's expectations. Clearly, market liquidity has reduced, and early investors have not continued to participate in turnover but are in a wait-and-see state.

On the contrary, those retail investors who started bottom-fishing around 92k are gradually moving towards the exit. The support between 95k and 100k remains rock solid. In the short term, unless there is substantial negative news, it is not recommended to short Bitcoin.

Short-term fluctuations in a bull market are often needle-like, but the speed of recovery is usually very fast. The current trend of Bitcoin should not raise doubts about whether it is in a bull market, even if it is just Bitcoin's bull market.

Although the decrease in market liquidity has brought about a wait-and-see sentiment, the support between 95k and 100k has not changed. As long as there is no significant negative news, the overall market trend remains bullish.

Short-term fluctuations may cause some investors to feel anxious, but for those who are optimistic about the overall trend, short-term adjustments are merely playful market behavior, and the final trend will determine Bitcoin's movement.

Master Looks at Trends:

From the current technical perspective, an ascending triangle convergence pattern has formed. If it stabilizes at 99K, further upward movement can be expected. The trend of continuously raising lows and repeatedly testing resistance at highs, if it digests the selling pressure above after multiple tests, can be expected to break through in the short term; however, attention should be paid to 100K as a strong resistance, and caution should be exercised regarding selling pressure here.

Resistance Levels Reference:

First Resistance Level: 99000

Second Resistance Level: 100000

Support Levels Reference:

First Support Level: 98300

Second Support Level: 97700

Today's Suggestions:

The current pattern has a higher probability of rising, but there is still a possibility of a decline. Therefore, attention should be paid to the support situation of the lower trend line and observe whether the pattern can be completed. If it breaks below the trend line, the pattern will fail, and the view will shift to a short-term adjustment.

Operate based on the short-term upward trend line, focusing on rebound opportunities as the lows continue to rise. Adjustments should remain moderate, avoiding breaking key lows, and closely monitor the 20-day moving average trend on the hourly level!

12.26 Master’s Band Trading Setup:

Long Entry Reference: Light long in the 97700-97200 range; if it retraces to the 96600 range, go long directly. Target: 98300-99000

Short Entry Reference: Light short in the 99700-100300 range. Target: 99000-98300

This article is exclusively planned and published by Master Chen (WeChat public account: Coin God Master Chen). For more real-time investment strategies, solutions, spot trading, short, medium, and long-term contract trading techniques, operational skills, and knowledge about candlesticks, you can join Master Chen for learning and communication. A free experience group for fans has been opened, along with community live broadcasts and other quality experience projects!

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