Master Discusses Hot Topics:

Tomorrow's big event is undoubtedly the Federal Reserve's interest rate cut, but I want to say that there's really nothing exciting about this rate cut. The market has already scripted a 25 basis point cut in December, just like watching a drama with spoilers—there's no suspense at all. The real stars are the dot plot and Powell's words.

The market is driven by expectations and trades on emotions. Even if the rate cut happens as expected, so what? If Powell opens his mouth and says something like "the rate cuts may slow down next year," the market's mood will likely cool off instantly, like a boiled crab.

Under high interest rates, corporate risks are like branches in a cold winter; a little blow can make them fall faster. This morning's market activity was clearly a baptism for retail investors. A sharp drop scared everyone into thinking it was a preview of the market, but it was just to prepare for tomorrow's main event of the rate cut and speech.

Even if Powell casually says "no rate cut in January," it would be enough to send the market into a cold sweat. Next week is Christmas and New Year's, and if liquidity tightens, the market's porridge will likely become even harder to digest.

So my viewpoint is very clear: don't mess around, don't chase shorts; this pullback is a risk-averse sentiment, not a vacuum. The main trend hasn't changed, and that's the market's confidence.

Continuing from what I said yesterday about altcoins, recently Bitcoin and altcoins are completely different stories. Bitcoin has transformed from "The Wandering Earth" to "Officials Nurturing the People," following a "legitimate" bureaucratic logic. As for altcoins? They are still in the primitive era, like a second-rate writer waiting for the market to give them a reason to stand on a platform.

Currently, the altcoin market lacks more liquidity support; it's just a pile of loose sand. Rate cuts and QE are their only lifelines, but all they can do now is adjust their posture and wait for the wind to come. Recently, the movements of altcoins are similar to retail investors' mentality. They want to run away at the first drop and go all in at the first rise.

For Ethereum and mainstream altcoins, after the liquidation, they are all undergoing technical repairs, but a second dip is highly probable. Strong coins may at most not break the liquidation low, while weak coins may not even hold their previous lows. Therefore, I believe this month will still be a period of fluctuation for altcoins, and the real turning point will have to wait until the first quarter of next year, when spring arrives. Remember, the wind won't stop for anyone; those chasing dreams must also see the direction clearly.

Master Looks at Trends:

After Bitcoin broke through the historical high point from the previous day, a bearish divergence appeared, and it is currently in an adjustment phase. In the area where it broke the historical high, there is still a significant amount of profit-taking selling, forming a large bearish candle.

After breaking the high point, it is adjusting, and the short-term perspective should remain on adjustment. Within the range of decline and consolidation, opportunities for entry can be sought.

Resistance Levels Reference:

First Resistance Level: 106700

Second Resistance Level: 108000

Support Levels Reference:

First Support Level: 103500

Second Support Level: 103000

Today's Suggestions:

Since this is a pullback area after breaking the historical high, a stronger adjustment may occur than before. At this stage, the risk-reward ratio favors shorting, but shorting must be done with very short-term operations. The overall trend remains upward, and the principle of following the trend must be adhered to, setting positions based on the above support levels.

In reality, if a significant adjustment occurs after breaking the historical high, it may take a long time to refresh the high point again. Therefore, at the end of a technical rebound, one should maintain a short-term bearish perspective and flexibly adjust positions within the range.

12.18 Master’s Band Strategy:

Long Entry Reference: Light long in the 102000-102600 range, Target: 103500-104800

Short Entry Reference: Light short in the 104800-105700 range, Target: 103500-102600

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