Master Discusses Hot Topics:

There was no update over the weekend, and many fans thought I had run away. However, the drop in Bitcoin from last night to today made me unable to resist coming out to say a few words. Many people are starting to feel pessimistic, wondering if the market has cooled down. But I want to say, don’t rush, be patient; the game of chess in the market hasn’t reached the point of revealing the bottom yet.

Let’s first review the recent trends. Since the end of the election, Bitcoin's price has been hovering around 95K, resembling a sudden wind stirring a calm pond. Subsequently, due to frequent high-level personnel appointments, the market experienced a wave of increases, but this was more supported by verbal good news.

So the question arises: have these good news actually materialized? No! Instead, we were met with the cold water of the Federal Reserve slowing down interest rate cuts, which inevitably leads to a correction in sentiment.

But will this correction really last long? Not necessarily. The election phase has ended, but the power transition and appointment phase has just begun. The standoff crisis has also been temporarily avoided, and the Republicans are not in the mood to trip up old Trump. Looking ahead to January 20th when Trump takes office, even a mention of cryptocurrency could excite the market for a while.

Next is the holiday effect: Christmas Eve and Christmas, low liquidity is inevitable, and the market is likely to continue fluctuating. After the New Year’s Day market closure in our country, Q1, as the annual kickoff, may present a good opportunity for bulls to counterattack. Trump’s inauguration speech on January 20th could also be a potential small peak.

Now, regarding sentiment, the current panic index in the market has gradually dissipated. Those investors who ran away in panic are basically not firm retail investors. The remaining ones are either short-term players or hardcore investors who dare to gamble. Fluctuation is not a bad thing; it’s more like a “purification” process for retail investors.

I still remember when Bitcoin fluctuated at 26K for eight months before soaring to 73K; after fluctuating at 65K for eight months, it surged to 100K. What about this time? I don’t think it will take another eight months. The reason is simple: the expectations for Trump’s support in January are too strong; it all depends on what real benefits Trump can bring to cryptocurrency.

Let’s talk about Ethereum; this wave saw a maximum drop of 25%. Historical data tells us that in a bull market, the first major drop in each upward trend often indicates either a bottom has been reached or a significant B-wave rebound is coming.

Moreover, Ethereum's performance in January historically is quite interesting: except for the bear markets of 2019 and 2022, January in other years has almost always seen gains, especially in the second year after a halving, which performed exceptionally well.

Starting this week, liquidity may further dry up. Even ETFs may shift from net inflow to net outflow, and short-term prices may break below the concentrated chip area. But as long as key support is not broken, it’s not a big problem.

The trend hasn’t changed; this is just another reshuffling in the market, and those who are steadfast will laugh last when the game ends. I’m looking forward to January 20th and how Trump’s “big move” will change the game!

Master Looks at Trends:

Bitcoin failed to complete a trend reversal over the weekend. Although there was a rebound, it was not a meaningful one, and currently, the downward pressure is increasing. The current judgment has formed a short-term low at 93.5K, which can be seen as a range for short-term rebounds. Therefore, before the trend changes, we still need to pay attention to the possibility of further declines.

Resistance Levels Reference:

First Resistance Level: 97700

Second Resistance Level: 97000

Support Levels Reference:

First Support Level: 94700

Second Support Level: 93500

Today's Suggestions:

Before the trend changes, the possibility of a downward movement cannot be ruled out. The current second support level is the short-term low; if it breaks again, it may open up a downward space of 91~92K.

There has already been a significant drop, and I plan to operate in the technical rebound range, but during the rebound, I still need to maintain a bearish view. In the absence of upward momentum, it is recommended to adopt a high short view for operations.

12.23 Master’s Wave Strategy:

Long Entry Reference: Enter long lightly in the 92350 range; if it retraces to the 90850-91125 range, enter long directly. Target: 93500-94700

Short Entry Reference: Enter short lightly in the 96500-97000 range; enter short directly at 97500. Target: 96000-94700

This article is exclusively planned and published by Master Chen (public account: Coin God Master Chen). Master Chen is the same name across the internet. 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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