Preface: Investment carries risks, and operations should be cautious.
Article review takes time, and there may be delays in publication. The article is for reference only, welcome to read!
Article writing time: January 2, 15:21 Beijing time
Market Information
- The IRS has postponed the implementation of cryptocurrency cost basis reporting rules;
- Goldman Sachs has lowered its Federal Reserve rate cut forecast for this year to 75 basis points;
- Founder of Bridgewater Capital: The U.S. Senate will approve a Bitcoin purchase plan, but it is unlikely to buy 1 million coins;
- Standard Chartered Bank: The scale of institutional investors purchasing Bitcoin in 2025 may surpass that of 2024;
- K33 Research: As global markets digest the Federal Reserve's pessimistic forecast for rate cuts in 2025, Bitcoin remains unaffected by stock market declines;
Market Review
Previously, Bitcoin fell and tested around 92, where we predicted a rebound would begin. However, Bitcoin did not sustain the rise, peaking at 99950 before falling again. The subsequent drop directly broke the short-term low of 92272, with the current lowest point at 91510. The long positions we set up at the end of last month were undoubtedly stopped out. Recently, Bitcoin has been fluctuating above 90000, with rapid rises and falls, but the bullish trend in the market has not changed, and further upward movement is expected. The Ethereum entry point is around 3340, which has been relatively strong and did not hit the 3200 stop loss. As of the last article update, the lowest drop was at 3302, and it is currently in a profitable state. Continue to hold Ethereum long positions and look for opportunities to re-enter Bitcoin. The market will not remain in fluctuation forever, and the time for a rise is not far off;
Market Analysis
BTC:
From the daily chart, as long as Bitcoin does not effectively break below the support around 90000, a rebound is just a matter of time. This is already the fifth test of the support level. The support here is relatively strong. Although the previous long positions were stopped out, it does not mean the market has reversed or broken the bullish trend. On the daily chart, after Bitcoin formed a long upper shadow at the previous bottom, yesterday's movement was a bullish candle, and today it has again formed a bullish candle. If Bitcoin continues to rise and breaks through the high point of 96254, the market will begin to gain momentum. Recently, the 4-hour chart has shown rapid fluctuations with large bullish and bearish candles. My strategy is to buy on dips. As we enter January, the closer we get to Trump's inauguration, the more positive news will emerge in the market. The opportunity for Bitcoin to rise above 110,000 is quite significant. In trading, the strategy is to go long, with a recommended entry point around 95000. If it drops by 2000 points, add to the position, with a stop loss set at 91500 and leverage reduced. The target for this wave is 105000 to 110000, with a cycle expected to last about half a month to a month. Manage your position well and seize entry opportunities; for short-term trading, control risks and manage profits and losses independently;
ETH:
From the daily chart, the long positions around 3340 for Ethereum have not yet hit the stop loss, forming strong support around 3300. Bitcoin's multiple dips have not affected Ethereum. Long positions around 3340 can continue to be held, with short-term attention on the breakout of the previous 3452 level. If this long upper shadow breaks, Ethereum will continue to rise. This bull market belongs to Bitcoin, so we won't look at very high positions for Ethereum. The previous target range remains at 3720-3890. After reaching this range, we will decide whether to continue holding based on Bitcoin's movement. Manage your entry opportunities independently; for short-term trading, control risks and manage profits and losses independently;
In summary:
The article is time-sensitive, be aware of risks, and the above is only personal advice for reference!
Follow the WeChat public account "Crypto Lao Zhao" to discuss the market together;
All suffering stems from the pursuit of certainty. Impermanence is the norm and the way life should be. Always wanting to grasp the market, not trading at a 50% certainty, not trading at a 70% certainty, must wait for a 100% certainty—where is there a 100% certainty in the market? Trading is about trading risks, trying to let probabilities stand on your side. Those who give love will receive love in return; those who bring blessings will receive blessings. Sometimes, learn to take a little loss, be a bit foolish, a bit clumsy. For example, if the market is bullish, once this is confirmed, don’t be too rigid with your position, lower your leverage a bit, and then get in first. If it reverses, so be it.
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